A tale of two pipelines: US, Guyana projects forge ahead, despite environmental lobby

The Mountain Valley pipeline project is one of many marred by delays due to regulatory and legal battles with environmentalists. But now, the project is a go, after a U.S. Supreme Court granted lifts on stays that halted its completion – though six years after the initial 2018 date. 

The West Virginia-to-Virginia Pipeline has only a short section to be completed; 3.5 miles (5.6 km) out of the 303 miles (488 km) that pass through the federally-owned Jefferson National Forest. 

The Equitrans Midstream-led project costs a whopping US$6.6 billion and is a big component of unlocking additional gas supplies from Appalachia, delivering gas to existing pipelines, and servicing the U.S. mid-Atlantic and Southeast regions. 

But because the pipeline crosses waterways and forest areas, opposition from environmentalists in the US was strong.

Guyana also faces a similar dilemma with its Gas-to-Energy project. Environmentalists on that side of the Atlantic mounted challenges with local courts to halt the environmental permit granted to ExxonMobil – the developer – for the project, currently in its early stages. 

The contention of the complainants – Elizabeth Deane-Hughes and Vanda Radzik – is that Exxon does not own the land through which the pipeline will pass before connecting at the Power Plant site. But that’s only one. They had mounted a second challenge, via an appeal to Guyana’s Environmental Protection Agency (EPA) on its decision to not require a separate study for the Power Plant. Guyana’s Environmental Assessment Board (EAB), empowered to review the EPA’s decision, upheld the decision by the EPA, allowing the project to move forward.

The project is aimed at transforming the country’s energy landscape and providing low-cost electricity for its citizens. The government has already plugged US$100 million into the project. 

Its total cost is US$1.8 billion of which Guyana will plug US$759 million. It aims to establish a facility with a 300 MW natural gas power plant and a natural gas liquids (NGL) plant at the Wales Development Zone.

A joint venture between CH4 and Lindsayca will develop the integrated facility.

All you need to know about Guyana’s Gas-to-Energy project (Updated) | OilNOW