Plans are moving expeditiously to implement the Government’s decision to utilise natural gas brought up from the Stabroek Block by the Exxon consortium to generate power that would be utilised in our national power grid, and also to utilise some of the components of the natural gas as the base for manufacturing a range of industrial products, such as methanol etc. In a notice last Friday, the Guyana Environmental Protection Agency (EPA) directed ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), to conduct an Environmental Impact Assessment (EIA) in order to receive authorisation for the gas-to-energy project. The public now has 28 days to make submissions to the EPA on matters which it thinks should be considered in the EIA.
As per the submission to the EPA, the major component would firstly be a 12-inch “Offshore Pipeline” that would transport up to 50 million standard cubic feet per day (MSCFD) of gas from Liza Phase 1 and Liza Phase 2 FPSOs to connection with onshore pipeline. The maximum flow of the pipeline would be approximately 120 MSCFD. This would feed into an “Onshore Pipeline” of identical gauge that would transport gas from the offshore pipeline to the Natural Gas Liquefaction (NGL) Plant at Wales. The maximum flow of this pipeline would match the offshore rate.
At Wales, the NGL Onshore Plant will be constructed. It would remove propane, butane and pentanes+ liquids from the supplied natural gas. These could either be sold to the public or companies, and the remaining gas could be treated to specifications required by the power plant – including dehydration and pressure let down of the gas. As implied by this requirement, the Government would be constructing a Power Plant to generate at least 250MW of electricity for industrial use, as described above. It is to be noted that the present EIA requested by the Exxon Consortium involves only the supply of natural gas: the power plant is a separate entity that is the responsibility of the Government.
It has also been spelt out that there would be a “Temporary Material Offloading Facility” (MOF) established on the West Bank of the Demerara River for offloading of heavy modules and imported material or equipment. Additionally, there would be some “associated infrastructure upgrades” in the form of a construction access road development/improvement as required along the onshore pipeline route. This would likely comprise a combination of soil stabilisation and temporary hard-surfacing, with restoration following completion of construction.
Finally, the “Onshore infrastructure supports” would include shorebases, pipe yards, fabrication facilities, fuel supply facilities, and waste management facilities.
One change from an earlier Government announcement is that the 220km offshore pipeline would now land at La Jalousie, WCD and then veer eastwards to Crane, where it would turn south to cross the West Demerara Highway, and proceed for 21-27km to Wales across present rice fields until it reaches the No 1 and 2 Canals Polders, where it would traverse the abandoned Wales sugar cane fields. All of this is obviously a tremendous undertaking, and it is estimated that approximately 600 persons would be employed for the duration of the construction phase.
Back in February, President Irfaan Ali had pointed out that the entire Region 3, in which Wales, WBD is located, would see massive development that would create significant opportunities and a trickle-down effect through the industrialisation plans. He spoke about his Government’s “national energy plan, that is looking at reducing the cost of energy by almost 50 to 60 percent, making Guyana now a competitive area for manufacturing within the region, for packaging and processing and integrating the opportunities in all these islands and communities with that national energy plan.” As such, he promised, “You will see development of agro-facilities, agro-processing facilities.”
For too long, all Guyana heard about was its “potential”. But at long last we are witnessing that potential being transformed into reality.
