Thursday, October 6, 2022

Exxon hires Subsea 7, Van Oord consortium to install pipeline for Guyana’s landmark Gas-to-Energy project

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Guyana’s transformational Gas-to-Energy project is quickly advancing. ExxonMobil’s Guyana affiliate, Esso Exploration and Production Guyana Limited (EEPGL), has awarded a substantial contract to Subsea 7 and Dutch maritime contracting company, Van Oord, for the construction of the offshore pipeline and accompanying infrastructure.

Subsea 7 made the announcement on July 27. The company noted that the scope covers project management, engineering, and the installation of approximately 190 kilometres of pipeline in water depths of up to 1,450 metres.

Subsea 7 and Van Oord are also responsible for the associated shallow water portion and “onshore approach” where the pipeline will land on the west of the Demerara River.

“We are honoured to have been selected for Guyana Gas to Energy. This is an important project to support the Guyanese people and we look forward to continuing our relationship with EEPGL in one of the most prolific and exciting development basins in the world,” said the Vice President for Subsea 7 (US), Craig Broussard.

Also commenting was the Commercial Director of Van Oord, Hans van Gaale who expressed similar sentiments. He added that “Developing the coastal infrastructure for the project will allow our Subsea 7 and Van Oord consortium to positively contribute to the development of Guyana’s electricity supply which in turn will reduce Guyana’s dependence on imported fuels.”

According to Subsea 7, a substantial contract is defined as being between US$150 million and US$300 million. It should be noted, however, that the figures only represent Subsea 7’s share.

The pipeline, onshore and offshore components combined, carry a preliminary cost estimate of US$1.3 billion. Over a 20-year period, that is expected to be repaid through cost oil.

A guaranteed minimum of 50 million cubic feet per day (mmcfd) of natural gas would be transported from the Liza Phases One and Two projects offshore to the Wales Development Authority, where the onshore plants will be located. Government is responsible for the plants, for which intends to hire a project manager to ensure efficient and timely completion.

Gas-to-energy is regarded as a game-changing project for Guyana’s energy sector.

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