ExxonMobil Guyana said it remains on track to complete the pipeline for the country’s Gas-to-Energy project set to come online in 2024.
Providing an update on October 17, President of the company, Alistair Routledge, said pipelaying is currently underway in the shallow end of Guyana’s Demerara River.
“You [will] find that we are already welding and laying pipe onshore. We are drilling horizontally under the seawall into Crane so the pipe actually in there passes under the seawall,” he relayed.
Exxon hired Van Oord and Subsea 7 to lay the offshore pipeline, and SICIM and GAICO for the onshore pipeline.
The cost for the installation of the pipeline and associated infrastructure is approximately US$1 billion. Exxon and its Stabroek Block partners, Hess and CNOOC, are expected to strike a deal with the government for the recovery of this injection, through annual payments of US$55 million over the 20-year life of the Gas-to-Energy project.
The project is expected to transport 50 million cubic feet of gas per day in its first phase. This will provide enough electricity to stimulate Guyana’s energy expansion agenda, adding 250 megawatts (MW) to the grid and providing cheaper power to catalyze the shift to renewables.
