PHOENIX PARK Gas Processors Ltd (PPGPL) yesterday made good on hints dropped at a tour of its plant last month, when it announced the acquisition of a US entity.
In a news release, PPGPL said as of February 1, 2020, PPGPL acquired the natural gas liquids (NGL) marketing assets of Twin Eagle Liquids Marketing LLC, through its wholly owned US subsidiary, Phoenix Park Energy Marketing LLC. The acquisition cost was not disclosed by the gas processing company.
Twin Eagle Liquids Marketing LLC is a company based in Houston, Texas, USA, and is engaged in the business of marketing, trading and transportation of natural gas liquids in Canada, USA and Mexico via rail. Natural gas liquids are propane, butane and natural gasoline. Propane and butane are used as cooking gas or for heating.
PPGPL president Dominic Rampersad said: “Through this acquisition, we will broaden our business platform and deliver more value to our shareholders and customers as we enhance our competitiveness in the global marketplace.”
PPGPL, the only natural gas liquids (NGLs) hub in the region, is involved in natural gas processing, fractionating, aggregation and NGLs marketing. Its new business unit, Phoenix Park Energy Marketing LLC, will be focused on the marketing of NGLs in North America. In the news, PPGPL said that the acquisition of the American marketer is aligned to the company’s strategy to grow the business internationally along the energy value chain.
It is in fact the company’s first major step towards realising its vision, “to be a recognised global leader in the development of energy-related businesses.”
PPGPL said, over the past three years, the company has taken very deliberate steps to realise this vision, including expanding its revenue streams to include condensate processing and physical product trading.
With this acquisition, PPGPL has now added a new source of revenue to its existing portfolio thereby further diversifying its business and providing a focal point for an expansion thrust in the North American natural gas market.
The expansion of PPGPL into the US midstream energy market spells good news for its shareholders, especially TTNGL, which is traded on the Trinidad and Tobago Stock Exchange. TTNGL owns 39 per cent of PPGPL, while the balance of the company is owned by 100 per cent State-owned National Gas Company.
The company’s bold step outside Trinidad and Tobago comes at a time when the North American industry is expanding at a rapid rate.
In the news release, Rampersad said: “This is a new chapter for the company and its shareholders as we open new doors and export our expertise, while establishing a presence in other territories. Our people are committed to our vision and to realising improved returns to shareholders, and added value for the NGC Group of Companies and the people of Trinidad and Tobago.”
PPGPL will continue to be focused on gas processing and water-borne NGLs trading regionally and internationally, while its new subsidiary Phoenix Park Energy Marketing LLC will be engaged in the business of marketing, trading and transportation of natural gas liquids via rail in Canada, USA and Mexico, as they have done previously.