With the Uaru Development Project expected to produce 540 million standard cubic feet of gas per day, Guyanese authorities want ExxonMobil Guyana to conduct a study on the possibilities for export.
According to the provisions of the Petroleum Production Licence for Uaru, ExxonMobil Guyana is required to conduct a Gas Utilisation Study to examine the associated gas and non-associated gas available in the project. It must consider over the short, medium and long term, the potential for export. Specifically, government wants to understand feasibility of gas export as Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG).
The study will also consider scenarios for the demand that might be expected for gas sales locally, regionally, and internationally.
The document further outlines that the licensee shall examine the feasibility of utilising the planned wells, flowlines, risers and production facilities for the export of gas both during and after the currently planned production phase set for 2027.
Exxon is also required to determine the feasibility and cost of adding gas export equipment, wells, well workovers, flowlines, meters, risers and pipelines for export gas not included in the original Field Development Plan.
The company has 60 days from the date the licence was issued (April 27, 2023), to propose for approval by the Minister, terms of reference, methodology and work plan (including the schedule of activities) for each area outlined for the study. Within 270 days of the approval or such later timeline as directed by the Minister, the licensee is expected to complete the study’s final report.
For the time being, Guyana is pursuing a landmark Gas-to-Energy project that will utilise gas resources from the Liza Phase One and Liza Phase Two Projects. Those resources would feed into onshore facilities at the Wales Development Zone for a 20-year-period. Government has already signaled intention to utilise excess gas, at the appropriate time from the Payara and Yellowtail Development Projects.
The US$1.8 billion Gas-to-Energy project is expected to slash Guyana’s electricity costs by 50% while providing a stabler and cleaner energy source that is in keeping with the overarching goal of fuelling a green economy.
