Guyana is set to pay ExxonMobil Guyana US$55 million each year in recovery costs for the massive gas pipeline being built by the oil giant for its landmark gas-to-energy project.
This update was provided by Winston Brassington, Head of Guyana’s Gas-to-Energy Taskforce on day two of the International Energy Conference.
Brassington made it clear that the cost was fixed and will run for a 20-year period.
“…it will have no adjustment and was calculated to allow Exxon [and its co-venturers] to recover their investment of US$1 billion over the years,” he explained.
The US$1 billion cost, according to Brassington 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) currently under construction; supervision by Exxon and contingency works.
The project is meant to allow for the transport of a minimum of 50 million cubic feet of gas per day (MCFD) from the Liza field in the Stabroek Block to the Wales Development Zone. There, the plants will receive the gas to generate electricity for Guyana’s grid and Natural Gas Liquids (NGLs) at least for domestic use.
The US-based partnership CH4/Lindsayca will be constructing the power plant in an integrated facility with the NGL plant, at a cost of US$759 million. The construction of the pipeline, to be led by ExxonMobil, is expected to cost approximately US$1.3 billion. Construction on both aspects will commence this year.
GtE is touted as the most transformational project in Guyana’s history.