Guyana’s Natural Resources Minister, Vickram Bharrat, has confirmed to OilNOW that studies are underway to determine which of ExxonMobil’s Stabroek Block projects can utilize the additional capacity of the Gas-to-Energy pipeline, following start-up in 2025.
Mr. Bharrat said, “The Liza development will supply 50 million standard cubic feet of gas, but the pipeline has a maximum capacity of 130 million cubic feet [per day]. Studies are being done to determine which development will fill the pipeline.”
Guyana’s Vice President, Bharrat Jagdeo, recently spoke of the government’s interest in having the full capacity of the pipeline utilized. He said work is ongoing for the completion of the natural gas strategy. That document will outline the uses for Guyana’s gas resources which stand at 17 trillion standard cubic feet. Government also issued a request for proposals from private companies for the design, finance, construction, and operation of essential gas infrastructure to support offshore developments.
“We’re not awaiting the completion of the overall gas strategy to issue the RFP. We believe that a lot of the excess gas that’s not just in the Yellowtail project but other places, that right now, we need to bring in. We have to demand for the full capacity of the pipeline,” the VP said.
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He further noted that ExxonMobil has to commit to finding another 80 million cubic per day to put into the pipeline. Such an initiative would require an extension of the pipeline to the other project. If the full capacity of the pipeline is utilized, Jagdeo believes that the project’s economics would increase exponentially for Guyana.
The Gas-to-Energy project is poised to be the most transformative for Guyana’s development trajectory. The initiative is expected to allow for a 50% reduction in electricity costs and a new era of industrialization. Guyana and an ExxonMobil-led consortium are executing the project.
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Exxon is responsible for building a pipeline to bring gas from the Liza Phase 1 and 2 projects in the Stabroek Block to onshore facilities. The Guyana government contracted US-based CH4/Lindsayca to construct the integrated facility at Wales on the West Bank of Demerara. It entails a 300-megawatt (MW) power plant and a natural gas liquids (NGL) facility.
