Gas-to-energy likely to attract manufacturers, usher in job creation – Exxon VP

– says project would impact every single Guyanese

The Gas-to-Energy project, of which oil giant ExxonMobil is playing a crucial role, is likely to attract businesses, including manufacturers, to Guyana’s shores as one of its many benefits, according to Exxon Guyana Vice President Phillip Rietema.
During a recent appearance on Energy Perspectives Podcasts, ExxonMobil Guyana Vice President and Business Services Manager Phillip Rietema spoke of the rapid development of the oil and gas industry in Guyana.
One of his company’s crowning achievements, he said, would be the Gas-to-Energy project, for which it is laying down critical pipelines. According to him, it is apparent that this project would be a transformational one for Guyana.
“Just ten years ago, there were very few people working in the industry (and) there were very few businesses. So that’s all value. In the region, the oil is in demand. It is needed in the region, it is providing reliable energy in the region and, really, throughout the world,” Rietema declared.
“And the other thing I will highlight is the Gas-to-Energy project that is being developed for the country. To me, as someone who has come from outside, it’s truly a transformational project for the country,” Rietema said.

As Rietema put it, there’s a high likelihood that among the benefits of the Gas-to-Energy project will be an increased influx of businesses coming to Guyana and looking to set up manufacturing facilities.
“The revenues are really nice, but the Gas-to-Energy project, it’s clear that is going to impact every single individual in the country. Cheap, reliable power is really fundamental to development,” he disclosed.
“And you can only imagine the different businesses that are coming here and looking to use that for further manufacturing, job creation, etc. So, that will be another exciting way that value is being generated for the country,” Rietema has posited.

The Gas-to-Energy project will see the construction of a 300MW combined cycle power plant and a Natural Gas Liquid (NGL) plant. Earlier this year, when he addressed the recently concluded Guyana Energy Conference and Supply Chain Expo, President Ali had said there is a possibility of a second NGL plant.
The pipeline and transmission network will be completed by this year. This will see the power plant and NGL facility being operational by next year, when electricity rates could potentially be slashed by 50 per cent.
The scope of Guyana’s gas-to-energy 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 200 kilometres of a subsea pipeline offshore that will run from Liza Destiny and Liza 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 would continue for approximately 25 kilometres to the NGL Plant at Wales, West Bank Demerara.
In last year’s national budget, the project received a $43.3 billion allocation in addition to the $24.6 billion injected into the start-up of the transformational project for the construction of the NGL Plant and the 300-megawatt (MW) Combined Cycle Power Plant at Wales, WBD.
This year, a whopping $80 billion was budgeted to advance this project and its associated infrastructure, including transmission and distribution upgrades to offtake the power and be able to feed it into the Guyana Power and Light (GPL) grid.
In March, two of GPL’s engines failed, disrupting power generation across the country. At the time, GPL was generating about 165 megawatts of power. However, the peak demand was about 180 megawatts. But with the power demand expected to grow to 232 MegaWatts (MW) by the end of this year, the need to increase power is a pressing one.
The cost of energy has long been cited as a roadblock for the private manufacturing sector. The Guyana Government, which has plans to expand value-added production through the establishment of several manufacturing plants, is also cognizant of the fact that these plans will be dependent on reliable power generation.