Exxon won’t recover investment in Guyana pipeline until first gas – Routledge

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Guyana’s repayment for the US$1 billion invested in the Gas-to-Energy project does not start until it is commissioned. ExxonMobil Guyana President, Alistair Routledge, made this point during an April 30 press briefing.

Reports in a section of the media had claimed that Exxon had already started recovering its investment in the project. Routledge offered clarification, stating, “The payment for gas does not start until the gas is flowing or at least until we get to that critical step.” 

While the gas will be subjected to a sales agreement, Vice President Bharrat Jagdeo has said that the gas is technically free. Guyana is only expected to pay the Stabroek block co-venturers US$55 million yearly for 20 years for the US$1 billion pipeline cost. 

Head of Guyana’s Gas-to-Energy taskforce, Winston Brassington had said the US$1 billion cost includes all costs to construct the pipeline (including offshore and onshore to end at the Wales power plant), enabling works – the laydown yard, site preparations on lands spanning 100 acres along with the materials offloading facility (MOF); supervision by Exxon and contingency works.

Routledge shared that the offshore segment of the pipeline is 70% complete, while the onshore portion is 68% complete. 

“We are on schedule to deliver the pipeline, and it should be ready to start up by the end of this year,” Routledge affirmed.

Two installation vessels have been deployed; one operates in the shallow waters near shore while the other handles installation in deep waters.

Pipeline installation kicked off last year.  

Exxon also completed “horizontal drilling” where the pipeline passes under the sea wall on the West Bank of Demerara. Routledge said what lies ahead is the installation of risers on the Liza Destiny and Liza Unity vessels and deepwater pipelaying, as well as connection to the power plant.

The Liza 1 and 2 will each be taken offline for two-week periods in the third quarter of the year. 

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