Friday, May 20, 2022

Guyana inviting proposals for combined construction of gas-to-energy facilities

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Even though it has already received Expressions of Interest (EOIs) for the construction of the natural gas fired power plant for the imminent landmark gas-to-energy project, the Guyana government is now inviting proposals from firms that are capable of constructing the power plant as well as natural gas liquids facilities simultaneously.

In a notice seen by OilNOW, the government said this decision follows extensive evaluation of technical and execution factors with Stabroek Block operator, ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL). The findings show that there would be substantial cost savings by combining the construction of the two facilities hence the government said it is now seeking firms that can prequalify to engineer, price and construct these two integrated plants.

Notwithstanding that the government had separately received Expressions of Interests in September 2021 that included the power plant and that Exxon had separately pre-qualified firms for the NGL facilities, the government said the decision to combine the two necessitates that all interested parties be invited to submit or resubmit information under the combined structure to be prequalified.

OilNOW understands that the pre-qualification seeks to ensure that firms including consortia can engineer, procure, and construct the power plant and NGL facilities, including with certain adjoining infrastructure with construction expected to start in the third quarter of 2022 and be completed by the fourth quarter of 2024. Firms are also expected to engineer, procure, and construct the project on a lump sum contracting basis.

With respect to the Broad Project Scope, the government said this includes combined cycle turbines, and a multiple fuel consumption (including rich and lean natural gas [per specification to be provided upon request], natural gas liquids and diesel) power plant to generate up to 300MW of power with net 250 delivered to the Guyana Power and Light grid at a substation on the East Bank of the Demerara River. This aspect is expected to include a 230KV substation and back up fuel capacity.

The government also outlined that it wants the NGL Plant to have the capacity to process 60 MCFD in the first phase and up to 120 MCFD in the second phase, be capable of conditioning the gas (dehydration and mercury removal) and removing heavier hydrocarbons (propane, butane, pentane plus) in the liquid form. The authorities also expect that there would be five-day storage for these products as well as truck or river loading facilities.

Furthermore, the project will include related infrastructure and civil works for the above facilities.

The government was keen to note that the project will be located in Hermitage, Guyana (part of Wales Development located near the west bank of the Demerara River) with approximately 150 acres allocated for it.

In addition to the non-binding proposals and technical details as indicated in the Broad Project Scope above, submissions are also required to contain a (Draft) Consortium Agreement between responding firms. In this regard, the government said it expects that Original Equipment Manufacturers (OEM) and other firms may participate in more than one submission and may be part of multiple proposals.

Additionally, interested parties are required to show a detailed track record of similar projects completed and evidence of financial ability including their last three years of audited financial statements. Project preliminary cost estimates including capital costs, financing costs, developing costs and all other costs of commissioning are expected in a breakdown format for each area in the scope of work.

In keeping with its strong stance on local content, the government said all interested companies must show how Guyanese would be incorporated, including but not limited to details on the percentage of project costs that would be locally sourced.

The government cautioned that potential developers should expect independent supervision of engineering, procurement, and construction by a reputable, international third party.

Questions or inquiries are to be submitted to the Permanent Secretary of the Natural Resources Ministry via email: [email protected] or call +15922312506 ext 214.

The deadline for submissions is January 2022 at 9:00 hrs.

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