Gas-to-energy project: Guyana will negotiate for increased gas supply – Min Bharrat

…says 12-inch pipeline allows for 130 million cubic feet per day

At present, the gas-to-energy project is governed by an agreement that will see oil giant ExxonMobil guaranteeing a 50 mi

llion standard cubic feet per day (scfpd) supply to Guyana. But according to Natural Resources Minister Vickram Bharrat, there is scope for this supply to be increased in the future.
During a recent broadcast interview, Bharrat spoke of the foresight that went into the Government deciding on a 12-inch pipeline for the project, rather than an eight-inch pipeline. He noted that this will cater to the increased supply of gas as the Government develops the Wales Development Zone (WDZ) around the project.
“We’re going to install a 12-inch pipeline, because it makes no sense we install an eight-inch pipeline now, and then two, three years from now, we’re hustling to change it or to install a new pipeline. We’re incurring that additional cost now,” Minister Bharrat said.
“So, with a 12-inch pipeline, we can bring in approximately 130 million cubic feet per day. We’re guaranteed 50 million upfront. But with the 12-inch pipe that will be in place, we can bring in as much as 130-140 million per day. And that is when we will start building out the industries around that power plant.”
Those industries include plans for a plant to produce fertiliser by converting the gas into ammonia, as well as plans for producing protein pellets that can be used in feed production and livestock.

The People’s Progressive Party/Civic (PPP/C) Government’s focus on agriculture is down to the vision of making Guyana the bread basket of the Caribbean and reducing the regional food import bill.
President Dr Irfaan Ali has declared that his Government will be pursuing an aggressive campaign to dismantle regional barriers to agricultural trade and that in the next four years, with the assistance of more diversified crops, Guyana would aim to reduce Caricom’s food import bill by 25 per cent. The ability for Guyana to produce its own fertiliser would be a major boost to that goal.
“For example, [we can] make our own fertiliser right here in Guyana. And there are so many other Petro-chemical industries we can look at. Of course, that is the more medium term-long term,” Minister Bharrat said.
“The gas is guaranteed, the 50 million cubics. We have put ourselves in a position where at some point in time in the near future, we will increase that. Working with Exxon, we will increase that beyond 50 million cubics,” he added.
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 the 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.
The pipeline would be 12 inches wide, and is expected to transport per day some 50 million standard cubic feet (mscfpd) of dry gas to the NGL plant.
The pipeline’s route onshore would follow the same path as the fibre optic cables and will terminate at Hermitage, part of the Wales Development Zone (WDZ) which will house the gas-to-shore project.
In Budget 2023, the gas-to-energy project received a $43.3 billion allocation. This allocation is in addition to the $24.6 billion injected into the start-up of the transformational project, which includes the construction of an Integrated Natural Gas Liquid (NGL) Plant and the 300-megawatt (MW) Combined Cycle Power Plant at Wales, WBD.
The NGL and 300 MW power plant components of the gas-to-shore project, are meanwhile expected to cost US$759.8 million and will be financed through sources that include budgets and loan financing.