Sunday, February 5, 2023

Guyana will need robust commercial framework to maximise gas export benefits – Norway firm

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With Guyana’s current estimated recoverable gas totalling over 17 trillion standard cubic feet, the government has already commenced efforts to determine the best use for these resources. The government reminded, in its 2022 mid-year report, that under the Yellowtail Petroleum Production Licence (PPL), ExxonMobil is required to do a Gas Utilisation study.

The study will examine the associated and non-associated gas available from all approved petroleum production licences (i.e., Liza 1, Liza 2, Payara and Yellowtail) and discovered resources in the Stabroek Block.

Norwegian Energy Intelligence firm Rystad Energy said Guyana will need a robust commercial framework to tap into its gas export potential. It said that even when considering local gas consumption expected with the Gas-to-Energy project, there would still be significant excess associated gas to potentially supply future export projects.

A good commercial framework, it said, would support investment into an associated gas transport infrastructure and resultant globally competitive gas prices.

Senior Vice President and Head of Latin America and the Caribbean for Rystad Energy, Schreiner Parker, visited Guyana in August and shared this information during a presentation.

Pursuant to this, the study Exxon is required to do, is to consider over the short, medium, and long term, a forecast of potential gas production for export from the floating production vessels and the expected use that gas would be put to.

The PPL notes that the study shall also consider scenarios for the demand that might be expected for gas sales locally, in South America, regionally (the countries bordering Guyana) and internationally; as well as consider the cost and feasibility of gas export as Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG).

The study will examine the feasibility of utilising existing gas production facilities, as well as the feasibility of and need for additional gas production and export equipment.

Exxon is also expected to provide potential gas export rates and profiles.

The government, via the release of its half-year report, said the foregoing would aid in determining the most beneficial use of the country’s gas reserves.

In the meantime, the Liza field will supply 50 million standard cubic feet of gas per day through a 12-inch pipeline that will run for 225 kilometres from the two offshore fields. This gas will be utilised at the Integrated Gas Fired Power Plant and Natural Gas Liquids facilities in the Wales Development Zone.

By 2024, these facilities will provide low-cost, reliable, and cleaner power for Guyana, as well as enable the advancement of heavy manufacturing and industrialisation in the economy.

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