Govt has not abandoned National Gas Strategy – VP

Vice President Dr Bharrat Jagdeo has assured that the Guyana Government has not abandoned plans to establish a National Gas Strategy but has, in fact, gone one step ahead with starting the process to determine the viability of monetising the country’s natural gas resources.
During a recent news conference held at the ruling People’s Progressive Party/Civic’s Freedom House headquarters, Jagdeo was asked about the status of the strategy.
“We’re working on it, it’s not an abandoned project… We’ve moved forward in the project that we wanted to check the viability for… But the Gas Strategy is a clear one… Normally, a Gas Strategy is about trying to determine how you will not just monetise the reservoir of gas but use it for national development,” the Vice President stated.
Last October, the Government had released the draft National Gas Monetisation Strategy to the public for their feedback. It had said that a large number of comments has already been received on the strategy.
In the meanwhile, Guyana has gone ahead and selected United States-based energy firm – Fulcrum LNG Inc., to work in a tripartite arrangement with the Government and US oil major, ExxonMobil, to determine the viability of developing the country’s gas resources.
VP Jagdeo has already made it clear that government will not be injecting any financing into this project.
“We don’t know whether we have a project as yet. The Government of Guyana has made it clear we’re not putting any money into this project but we have to explore whether we can develop a viable project now so that means a feasibility study and everything else to see if we can monetise the associated gas that we have outside of the gas that’s coming to the power plant.”
“So, we hired this firm and we’re gonna look at all the streams of benefits – from LNG exports, bringing the gas onshore for electricity or industrial development. All of that would have to be explored before you move to say we have a viable project and then we move to get it financed but it won’t be financed from the Government of Guyana,” he asserted.
Jagdeo had previously said that Guyana has attracted interests from “deep pocket” firms to develop its gas.
In May, it was revealed that a potential investment partner was shortlisted from the 17 Expressions of Interest (EoIs) that were submitted in February to monetise the country’s natural gas resources.
During a press conference last month, President Dr Irfaan Ali disclosed the selected company is Fulcrum, which, according to its website, partners with governments and companies to develop the necessary gas infrastructure to produce and sell natural gas and LNG (Liquified Natural Gas) in order to deliver reliable energy while transitioning to more sustainable energy sources.
Fulcrum LNG will now work on developing a viable gas project, via a tripartite arrangement with Government and ExxonMobil, which along with its partners is operating the Stabroek Block offshore Guyana, where several gas fields have been discovered.
Some 17 trillion cubic feet of gas has already been found in the Stabroek Block, with the Pluma and Haimara wells being proven gas fields.
Back in 2019 and 2023, ExxonMobil drilled for gas at the Haimara-1 and 2 wells, and emerged with varying degrees of success. It was recently revealed that the US oil giant’s drill programme for Guyana for this year and beyond includes plans to further appraise the Haimara 3 and 4 well sites in order to gauge the commercial potential for gas in the Haimara gas field.
The PPP/C Administration is adamant that Guyana cannot miss this opportunity to monetise its gas resources.
Currently, Government is pursuing its model Gas-to-Energy (GtE) project which is being constructed in Wales, West Bank Demerara, and will include a 300mw power plant that will utilise gas from the Liza field offshore.
The excess gas from the Stabroek Block is what will be used for the gas monetisation project.
“The first 50 million cubic feet of gas comes in to generate power. We may have another 70 to 80 million cubic feet to come in on that pipeline. We have to now make a determination how we would utilise that. It could be for generating additional power, fertiliser – different things,” the VP posited.
During his June 20 press conference, President Ali had touted the potential establishment of an aluminum plant with neighbouring Suriname using the gas resources.
The Head of State had noted that government has identified a technical team that will work with Fulcrum and Exxon to determine the technical and financial viability of a gas project(s), come up with a model, and to negotiate a potential agreement.
Among the projects being considered for the gas are a shore base facility, an additional power plant as well as a potential joint aluminum plant facility between Guyana and Suriname.
The Guyana Government has been touting an aluminum plant here since August 2022 – something which the Guyanese Leader recommitted to establishing during the Energy Conference held in Georgetown back in February.
Nevertheless, President Ali indicated last week that Government anticipates an agreement on a potential gas model by next year. (G8)