Gas production more important now than ever; Guyana forging ahead

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Outside of the introduction of a robust Local Content Legislation, Guyana intends to use the Gas-to-Energy project as a means of maximising benefits to the country from the deal it has with ExxonMobil. This was said by Vice President, Dr. Bharrat Jagdeo who lauded the initiative as being the stepping stone to Guyana’s industrialisation.

The former Head of State who holds the policy directive for the oil sector said the Gas-to-Energy project and the Local Content Act, were always part of the People’s Progressive Party Civic’s (PPP/C) plan, since it was in opposition, to increase benefits to Guyanese in the oil and gas sector.

He said the natural gas project is even more important now since the world has recognised that the energy transition cannot happen without the use of gas.

“We recognised that the only way to reduce our carbon footprint and electricity rates is through the utilisation of gas as a transitional fuel,” Dr. Jagdeo said. “And what is interesting, is that before COP26, the entire developed world was saying you can’t use gas as transitional energy. But that has changed with the war in Ukraine… they are now urging countries to pump more oil and gas. So, the developed world is very convenient…”

The Vice President said a Request for Proposal has gone out to nine prequalified companies for the construction of the power plant and natural gas liquids (NGL) facility, one of which OilNOW understands includes the National Gas Company of Trinidad and Tobago. RFP responses are expected by the end of July.

The Gas-to-Energy project will see the construction and operation of a pipeline from the Liza Phase 1 and Liza Phase 2 floating production, storage, and offloading (FPSO) vessels to an onshore natural gas liquids processing plant.

The project also entails the construction of a 12” pipeline to transport the guaranteed minimum of 50 million cubic feet per day (mmcfd) of natural gas from offshore to the Wales Development Authority.

Ongoing geotechnical and geophysical works for both offshore and onshore operations are advancing with portions already completed. Construction of the pipeline is expected to start in the third quarter of 2022 and will be completed by the fourth quarter of 2024.

ExxonMobil has sought environmental authorisation for the Project. The Stabroek Block operator is expected to handle the installation of the pipeline which will cost approximately US$1.3B.


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