Hess Vice President for Guyana and Suriname, Timothy Chisholm, said the Gas-to-Energy project would not only power industry and economic growth in Guyana but would help provide a reliable and cleaner source of energy to help meet rapidly growing demand for electricity.
Hess and its partners, ExxonMobil and CNOOC, are expected to make a final investment decision later this year on the project.
Chisholm explained that since more than 90% of Guyana’s power generation capacity comes from high-emissions heavy fuel oil, the reduction of emissions resulting from the replacement of it with natural gas will be beneficial.
“This project will deliver clean burning natural gas to Guyana, reducing carbon emissions by up to 50%,” Chisholm said.
This will be necessary as Guyana’s economy grows, and energy usage with it, with the expansion of communities and towns, and the introduction of the new urban settlement, Silica City.
“Demand in Guyana is expected to triple in the next five years as the economy continues its fast-paced growth,” Chisholm said. “Natural gas can not only provide a secure and reliable source of energy supply but brings with it important environmental benefits,” he said.
The partners and the government signed an agreement recently on the project. The agreement calls for the companies to construct a natural gas pipeline from the offshore assets in the Stabroek Block to a special industrial zone in Wales on the West Bank of Demerara. There, a natural gas liquids facility and power plant will be built by the government for an initial 50 million standard cubic feet per day of natural gas, for electricity generation, and other natural gas products.
The project is expected to be delivered in the next three to four years.
Gas-to-Energy will provide a transition fuel for Guyana, as it gathers renewable energy projects to clean up its energy mix. Government plans to deliver 500 megawatts (MW) of new power in the next five years.