Saturday, September 24, 2022

Guyana to seek int’l project manager for Gas-to-Energy Project

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Guyana’s Vice President Dr. Bharrat Jagdeo recently disclosed that the government intends to seek an international project manager for the construction of the power plant and natural gas liquids processing facility, the components of the Gas-to-Energy project it is responsible for.

He said, “We will go to tender in a matter of weeks for an international project management group that will manage the contract on our behalf to see that the quality is maintained and that it comes in on budget and on time because we don’t have that capability even at GPL (the Guyana Power and Light).”

Dr. Jagdeo disclosed that a Request for Proposal has gone out to nine prequalified companies for the construction component of the project, with responses expected next month.

The Vice President said the government is exploring financing and ownership options for the NGL facility. The former Head of State was also keen to note the importance of the NGL facility as he said government anticipates it will bring in perhaps US$70 million to US$100 million in annual revenues.

Government has already determined that it will be funding the power plant, Dr. Jagdeo revealed.

“So, this project will be great for the country; it will help to stabilise and provide us with cheaper power and create the basis for the industrialisation of the entire West Coast and this is the way the country will get a multiplicity of benefits,” the Vice President concluded.

The Gas-to-Energy project is poised to utilise resources from the Liza Phase One and Liza Phase Two floating production, storage, and offloading (FPSO) vessels which will be transported via a 12” pipeline on the seabed and mainly underground when it lands. A guaranteed minimum of 50 million cubic feet per day (mmcfd) of natural gas would be transported from offshore Guyana to the Wales Development Authority.

Construction of the pipeline is expected to start in the third quarter of 2022 and will be completed by the fourth quarter of 2024.

Esso Exploration and Production Guyana Limited (EEPGL) and co-venturers: Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited are handling the installation of the pipeline which will cost approximately US$1.3B.


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