The International Monetary Fund (IMF) has thrown its support behind Guyana’s plans to bring down electricity costs, which include the implementation of the transformative gas-to-energy project.
The initiative will see the construction and operation of a pipeline from the Liza Phase 1 and Liza Phase 2 floating production, storage, and offloading (FPSO) vessels to an onshore natural gas liquids processing plant (NGL Plant).
The project also entails the construction of a 225 km 12” pipeline to transport the guaranteed minimum of 50 million cubic feet per day (mmcfd) of natural gas from offshore Guyana to the Wales Development Authority.
Ongoing geotechnical and geophysical works for both offshore and onshore operations are advancing with portions already completed. 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) has sought environmental authorisation for the Project on behalf of itself and co-venturers: Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited. The Stabroek Block operator is expected to handle the installation of the pipeline which will cost approximately US$1.3B.
In a recent report, the financial institution said its staff strongly supports the authorities’ goals to transform the economy, address development needs in an inclusive way, and protect the long-term economic wellbeing of the country. Additionally, IMF Staff said it “strongly supports the authorities’ efforts to reduce electricity costs, improve transport infrastructure, diversify the economy, improve access to and quality of social services, and advance more broadly towards the Sustainable Development Goals.”
Since assuming office, the government has taken on the herculean task of reorganising the country’s energy mix to be led by a combination of gas, solar, wind and hydro projects.
This is specifically outlined in the country’s Low Carbon Development Strategy (LCDS) 2030. The new LCDS 2030, as outlined in the draft document that has been subjected to a two-month consultation period, focuses on harnessing Guyana’s unique advantages in creating a new low-carbon economy.