Wednesday, June 7, 2023

Guyana receives bids for combined construction of gas-to-energy facilities

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Bids from 12 companies were opened last Thursday for the combined construction of a natural gas fired power plant and natural gas liquids (NGL) plant for Guyana’s landmark gas-to-energy project.

According to an update from the Department of Public Information, the 12 bidders include Amerapex Cooperation (USA); NGC Group (Trinidad and Tobago); China Machinery Engineering Cooperation; CEPCOII Electric Power; CH4 Guyana Incorporated and Lyndsayca Incorporated; China Enegy International Guyana Company Limited; Apan Energy; Wison Offshore and Marine Limited; Constutora Queiroz Galvao; Tecnicas Reunidas; and Power China International Group Limited.

The decision for combined construction of the facilities 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’s move invite firms to bid 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 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 had 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 facilities.

ExxonMobil has said it is looking to make a Final Investment Decision (FID) on the landmark gas-to-energy project in the first half of this year which is set to significantly reduce the cost of electricity in the South American country and open up multiple new industries.

The project will utilise associated natural gas from ExxonMobil’s Liza field with the pipeline passing through Crane and other communities before landing at Wales on the West Bank of Demerara where a power generation facility will be constructed.

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