Exxon forging ahead with pipeline projects in South America, emphasizing gas development agenda

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Gas remains key to ExxonMobil’s development agenda as seen by the company’s acceleration of two major pipeline projects in the South American region. 

Over in Argentina, Exxon recently commenced the engineering study phase for the development of a new pipeline in the Neuquén basin. Known as the Bajo del Choique Nordeste pipeline, this project aims to transport up to 60,000 barrels per day (b/d) of oil to the existing Oldelval pipeline system. With an estimated cost of approximately US$75 million, the engineering phase is projected to last around four months. Construction is scheduled to commence next year, aligning with Exxon’s investment plan for 2023-2024.

Gas project a main pillar in Exxon’s commitment to providing sustainable development in Guyana – Liam Mallon | OilNOW 

Spanning a distance of 43 kilometres, the newly planned pipeline will feature a 12-inch outer diameter (OD). Its purpose is to connect Bajo del Choique’s early production system to the pumping station in Auca Mahuida, currently under Exxon’s operation as part of the Oldeval infrastructure. 

Exxon is also pursuing the massive Gas-to-Energy project in Guyana. 

It aims to put infrastructure in place so natural gas can be transported from the offshore Stabroek Block’s Liza oilfield to an integrated gas processing facility at Wales, on the West Bank of Demerara. A subsea pipeline will be installed on the seafloor to transport natural gas from the Liza field to an onshore pipeline at the West Coast of the Demerara River. The onshore pipeline will deliver the gas to the West Bank facility.

Gas-to-Energy project on track for 2024 delivery – Jagdeo | OilNOW 

A natural gas liquids (NGL) processing plant will be built to treat the gas to remove NGLs for commercialisation, and a 300 megawatts (MW) power plant will use the dry gas to generate electricity for domestic use.

The primary aim of the project is to provide the fiscal space for the government to slash Guyana’s historically high electricity rates in half. The project pegged at US$1.8 billion, is the largest in Guyana’s history.


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