The Gas-to-Energy project in Guyana is progressing. Alistair Routledge, President of ExxonMobil Guyana, and Dr. Bharrat Jagdeo, Guyana’s Vice President, provided updates on the project during recent press engagements.
On the government’s side, Mr. Jagdeo conveyed optimism about positive engagements with senior officials from the U.S. State Department and the United States EXIM Bank. The Guyana government has applied to the US Bank for a significant loan to support the Gas-to-Energy project. Budget documents indicate Guyana is seeking US$646 million.
“We’ve had extensive discussions with them. They’ve given us full assurances they’re working on this project. So, the United States government is fully supportive of the project,” Mr. Jagdeo said during a May 18 press engagement.
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The VP had caused to give these assurances after noting that, among environmental campaigners and lobbyists that oppose oil production, are those who have attempted to convince the US Bank not to support the Gas-to-Energy project.
The loan from the Bank would go to supporting the US$759 million cost of establishing an integrated facility at the Wales Development Zone on the West Bank of Demerara, comprising a 300 MW natural gas power plant and a natural gas liquids (NGL) plant.
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The government of Guyana and the Export-Import Bank of the United States of America had signed a memorandum of understanding (MoU) for up to US$2 billion to support development in Guyana.
The loan would also support the development of new and upgraded electrical transmission infrastructure. On that front, Mr. Jagdeo noted that evaluation of bids for the construction of substations is ongoing. To ensure a stable and efficient grid, he said the substations will be built to facilitate the evacuation of power generated at the Wales power plant. Stantec, a Canadian company, has been enlisted to assist in the evaluation process.
As it relates to ExxonMobil, Mr. Routledge noted that early works are underway, as the company and its Stabroek Block co-venturers prepare to make their final investment decisions on the landmark project. He said the FID is contingent upon the formalization of essential documents, including commercial agreements.
“So, the government has decided that in order to confirm the 10-year extension of the Liza production license, it feels that it needs to take that to Parliament. So that is the last step that is being worked on,” Mr. Routledge stated.
Mr. Jagdeo recently said the field development plan and production licensing for the Liza field have been reviewed.
Exxon is responsible for the installation of a pipeline to transport the gas from the Liza field to Wales onshore. Laying of the offshore pipeline is expected to commence before the end of June.
Both parties intend to deliver the project by the end of 2024.
