US$700,000 for natural gas to electricity generation study

Government has approved some US0,000 into a study that would seek to determine if natural gas could be utilised for electricity generation.

Minister of State Joseph Harmon said the proposal by Public Infrastructure Minister David Patterson was given approval by Cabinet on Tuesday.

The two-month desk study will be undertaken by Energy Narrative, a United States oil and gas consultancy firm.

During the eight-week period, energy work will seek to verify natural gas supply projections, verify natural gas demands projections, analyse the technical feasibility of the proposed natural gas pipeline, compare the proposed natural gas pipeline with other transportation media, analyse the technical feasibility of existing power generation equipment, integrating new gas fired electricity generation equipment, analyse the cost to deliver natural gas and estimated impact on electricity prices and prepare the interim report.

Natural Resources Minister Raphael Trotman on Wednesday evening told the local business community that the Government has decided to bring the natural gas to shore.

The latest information from ExxonMobil, which will be producing Guyana’s first oil, quantifies the available natural gas, which was found along with the oil, at around 30-50 million cubic feet per day.

Trotman said that amount can provide a 200 megawatt generation plant.

However, Government is still to decide how the natural gas will be used.

The considerations for the use of the gas include generating electricity, and fuelling the alumina plant if it is resuscitated or used in industry.

Minister Trotman said those are decisions that have to be made along with the decision on where the gas will go if there was going to be a pipeline along the coast whether from Georgetown to Crab Island.

The company has submitted its financial and technical proposals to the Government, Minister Harmon noted.