Canadian consortium among bidders shortlisted for gas-to-shore project
…discussions held on potential Amaila Falls partnership – diplomat
A Canadian consortium of firms is among the bidders who have been shortlisted for the construction of the transformational Gas-to-Shore Project, for which the Government is seeking a contractor to construct the power plant and the Natural Gas Liquids (NGL) plant.
This was revealed by Canadian High Commissioner to Guyana, Mark Berman, in a recent interview. He had been asked about the Memorandum of Understanding (MoU) that Guyana signed with the Canadian Commercial Corporation (CCC) in April of this year, with the aim of enhancing the commercial relationship between the two nations.
“There was some interest in looking at the bridge across the Corentyne, between Guyana and Suriname. And most relevant at the moment, is the Gas-to-Shore Project which obviously is one of the largest infrastructure projects that Guyana has ever undertaken. Which will significantly reduce energy costs.”
“So that’s a process that’s in the works at the moment and there’s a Canadian consortium that has been shortlisted and we’re very optimistic about that. CCC would bring the Government guarantee to that project, if this consortium is identified as the winning bid,” High Commissioner Berman said.
It had previously been reported that five bids ranging from US$450 million to US$900 million were received for the construction of the Gas-to-Shore Project. At present, Government has been meeting with landowners who will be affected by the project, with a view of offering them compensation.
The Gas-to-Shore Project, which has a 25-year lifespan, is expected to employ up to 800 workers during the peak construction stage, as well as some 40 full-time workers during the operations stage, and another 50 workers during the decommissioning stage.
The scope of the US$900 million Gas-to-Shore Project consists of the construction of 225 kilometres of pipeline from the Liza field in the Stabroek Block offshore Guyana, where Exxon and its partners are currently producing oil.
It features approximately 220 kilometres of a subsea pipeline offshore that will run from the Liza Destiny and Unity Floating Production Storage and Offloading (FPSO) vessels in the Stabroek Block to the shore. Upon landing on the West Coast Demerara shore, the pipeline will continue approximately 25 kilometres to the NGL plant at Wales, West Bank Demerara.
The pipeline would be 12 inches wide and is expected to transport some 50 million standard cubic feet per day (mscfpd) of dry gas to the NGL plant, but has the capacity to push as much as 120 mscfpd.
The pipeline route onshore will follow the same path as the fibreoptic cables and will terminate at Hermitage, part of the Wales Development Zone (WDZ), which will house the Gas-to-Shore Project.
The Guyana Government has invited interested parties to make investments in the WDZ, which will be heavily industrialised and for which approximately 150 acres of land has been allocated. Those land was previously used by the Wales Sugar Estate.
According to Berman, the Gas-to-Shore Project is just one of a number of projects the CCC could be involved in. He said that they have also had discussions with the Government on the Amaila Falls Hydropower Project (AFHP).
Canada is well-known for its hydropower infrastructure. In fact, the clean and renewable energy supplied by hydropower accounts for over 60 per cent of all the electricity generated in Canada. This is an area in which Berman said Canada could provide assistance to Guyana.
“The most obvious projects are the large infrastructure projects of which there are many in Guyana. And that’s one of the things the oil and gas sector will allow the Government to strengthen, the infrastructure in the country. Bridges, roads, hospitals.”
“And energy infrastructure. So, we’ve had discussions about potentially, for instance the Amaila (Falls) Hydropower project, which Canada has significant experience. Canadian companies may be interested in some bridge projects,” he said.
The revival of the 165-megawatt AFHP was one of the promises made by the People’s Progressive Party/Civic in its manifesto. The project was initiated under the previous People’s Progressive Party/Civic (PPP/C) Administration, but was scrapped by the coalition Administration which had controlled the National Assembly by a one-seat Opposition majority.
AFHP is expected to deliver a steady source of clean, renewable energy that is affordable and reliable, and is envisioned to meet approximately 90 per cent of Guyana’s domestic energy needs, while removing dependency on fossil fuels.
It is expected that the AFHP will be based on a BOOT model, wherein the company would supply electricity to the Guyana Power and Light (GPL) Inc at a cost not exceeding US$0.07737 per kWh, and wherein the company would provide the entire equity required by the project and undertake all the risks associated with the project. (G3)