Guyana’s Vice President, Dr. Bharrat Jagdeo has confirmed that as more offshore projects come online, the South American country is hopeful of becoming an exporter of gas, or value-added products derived from gas.
“Guyana is not looking to be a gas exporter immediately because there is only 50 million standard cubic feet of gas that is coming on board (via the Gas-to-Energy Project),” Dr. Jagdeo told OilNOW. “But in the future, we are definitely hoping we can export gas or value-added activities that are based on using gas as a raw material.”
On Friday the Guyana government and ExxonMobil announced start of oil production at the country’s second development – Liza Phase 2. When production ramps up later this year, Guyana’s output will triple and more projects are in the pipeline for startup in the coming years.
During the unveiling of the GY$552.9B budget which is backed by revenues from Guyana’s Natural Resource Fund, Senior Minister with responsibility for Finance, Dr. Ashni Singh said that the current estimate of the gas reserve is 16 trillion cubic feet (Tcf) with projections from Liza 1 and 2 likely at 50 million standard cubic feet per day (mmscfd) while Payara will bring an additional 20 mmscfd. While it is the consensus among members of government that this augurs extremely well for the Gas-to-Energy Project, it is the projections by ExxonMobil in the Environmental Impact Assessment (EIA) for the Yellowtail development that really support the notion for Guyana to consider being a gas exporter.
Since Liza Phase 1, Liza Phase 2 and Payara would satisfy the currently identified gas demand in Guyana, Exxon stressed that there is not enough additional demand in Guyana to consume the quantities of associated gas that will be produced from the Yellowtail Project which is expected to peak at around 450 MMscfd. It said, “A decision with respect to the export of gas from the Yellowtail Project will be made in the future. But gas export to shore or another phase of field development may be considered. Space reservation and basic design connections to allow for this are included in the Project scope.”
With respect to negotiations on the price to transport gas via the gas-to-energy project, Dr. Jagdeo said these are continuing with the hope for the completion of an agreement this month.
He assured that the model agreed upon would be explained to the citizenry.
