Gas-to-energy project: Int’l companies express interest in producing fertiliser locally

…as agro-processing facilities will be integrated – Agri Minister

Among the various benefits that the gas-to-energy project will bring for the agriculture sector is cheaper energy, with the Government looking to integrate the nation’s agro-processing facilities with the ambitious project to bring down agro-processing costs and expand the manufacturing side of agriculture.
During his year-end press conference, Agriculture Minister Zulfikar Mustapha reflected on the impact the gas-to-energy project will have on agriculture. According to Mustapha, the project will allow for manufacturers and food processors to get both cheaper and more reliable power. This will also lead to an expansion of food production.

“Recently I had a discussion with one of the companies that came in Guyana, interested in producing fertiliser. You know with the Russian/Ukraine war, we’ve seen an escalation in the cost of fertiliser. And if we can produce our own fertiliser in Guyana, then that would be a big thing for us in terms of reduction of the cost of production.”
“So, if we have reduction of fertiliser cost, reduction in energy and manufacturing, in terms of agro-processing, that would help us tremendously. That would redound to the sector, in terms of producing more and getting cheaper input in these agriculture sectors,” Mustapha said.
Reducing the agro-processing costs will be an important part of Guyana’s plan to reduce food imports into the Region by 25 per cent by 2025. With this in mind, the Minister noted that the Government is also looking to integrate food processing facilities with the project. These projects, being implemented in conjunction with the new Guyana Marketing Corporation (GMC), will benefit from the cheap and reliable energy.

“What we are now doing, especially with the New GMC, they have been working with a number of stakeholders, agro-processors. And we’ve built 12, 13 of those agro-processing facilities across the country. We need proper energy to run these places.”
“Because the lines that we have there, will demand what we want to produce. For example, we are working with various groups across the country. Right here on the coast, we have built a number of those. But we cannot depend solely on the network we have in GPL,” Minister Mustapha further said.
Under the gas-to-energy project, an Integrated Natural Gas Liquid (NGL) Plant and 300-megawatt (MW) Combined Cycle Gas Turbine Power Plant will be built. An industrial park, called the Wales Development Zone (WDZ), will also be built and benefit directly from the gas.
The NGL and 300MW power plant components of the Gas-to-Shore Project are expected to cost US$759.8 million, and will be financed through sources that include budgets and loan financing.
The scope of Guyana’s gas-to-energy project also 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.
In July of last year, a US$159 million engineering, procurement and construction (EPC) contract was awarded to Indian company Kalpataru Projects International Limited (KPIL). Under the terms of the contract, KPIL will be providing EPC services for the transmission lines and substations component of the Gas-to-Shore Project.
Meanwhile, oil and gas consortium Lindsayca/CH4 (LNDCH4) was contracted back in 2022 to construct the 300-megawatt power plant and NGL plant at Wales, West Bank Demerara as part of the gas-to-shore initiative.
Outside of the EPC contracts, the supervision of the NGL and power plant components of the project will cost another US$23 million. With a timetable to deliver the power plant by the end of 2024 and the NGL plant to be online by 2025, works are progressing on getting the gas-to-energy project off the ground.
In November last, Vice President Bharrat Jagdeo had revealed that Government will seek for another partner to come on board and fast-track the project, noting that they will further engage ExxonMobil, which along with its partners Hess Corporation and CNOOC Limited is producing oil in the Stabroek Block offshore Guyana where at least two commercial gas fields have been found.
According to the Vice President, the Government is not pleased with the pace at which the development of gas is moving, hence considering another partner. He had pointed out that with the finalisation of the gas monetisation strategy, the Government would like to nudge the gas development process along. Thus, bringing in another partner will help to underwrite some of the expenses and the risks associated with monetising the gas. (G3)