Guyana procures consultancy services from Indian company for gas-to-shore project

As the Guyana Government forges ahead with its model gas-to-shore project, a contract has been signed with Engineers India Limited (EIL) to provide consultancy services for the Integrated Natural Gas Liquid (NGL) Plant and the 300-megawatt (MW) Combined Cycle Power Plant at Wales, West Bank Demerara (WBD).
On Thursday, President Dr Irfaan Ali, as part of his seven-day Official Visit to India, witnessed the signing of the contract between Guyana Power and Gas Inc – a wholly-owned company of the Government of Guyana – and EIL.
The Guyanese Head of State was at the time meeting with India’s Minister of Petroleum & Natural Gas and Housing & Urban Affairs, Shri Hardeep S Puri in Delhi.
The two leaders held fruitful and engaging discussions on increasing cooperation across the entire oil and gas ecosystem. Both sides noted the synergies which exist between the two countries.
In fact, note was taken of recent developments in bilateral energy partnership which included the meeting between Minister Puri and Guyana’s Natural Resources Minister, Vickram Bharrat on the sidelines of ADIPEC-2022 in Abu Dhabi last October as well as the visit of Indian Energy Public Sector Undertakings (PSUs) to Guyana in August 2022.
During Thursday’s engagement, President Ali and the Indian Minister agreed on direct Government-to-Government cooperation across the entire spectrum of the oil and gas sector including increased long-term offtake, participation in exploration and production activities in Guyana, technical cooperation in the midstream and downstream sector, and capacity building.
Consequently, the two leaders agreed to set up two technical teams to take forward these discussions. The contours of future cooperation would be finalised during the visit of Guyana’s Vice President, Bharrat Jagdeo to India in February 2023.
Thursday’s signing for the procurement of consultancy services for the gas-to-shore project comes less than a month after the Guyana Government inked a US$759 million contract with US-based company LINDSAYCA, partnering with local firm CH4 Group – for the Engineering, Procurement and Construction of the NGL Plant and the 300-MW CCGT Power Plant projects.
As part of the gas-to-shore project, both the power plant and NGL plant will be constructed within the Wales Development Zone (WDZ). When it comes to the construction of a combined cycle power plant, this will generate up to 300 MW of power, with a net 250MW delivered into the Guyana Power and Light (GPL) Grid at a sub-station located on the East Bank of the Demerara River.
The Guyana Government has already invited interested parties to make investments in the WDZ, which will be heavily industrialised and for which approximately 150 acres of land have been allocated.
Those lands were previously used by the Wales Sugar Estate.
Head of the Gas-to-Shore Task Force, Winston Brassington has previously stated that ExxonMobil Guyana, which is funding the pipeline aspect of the project out of cost oil, has found that there would be substantial savings from combining these two facilities.
The scope of the approximately US$900 million gas-to-shore 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.
It features approximately 220 kilometres of a subsea pipeline offshore that will run from the Stabroek Block to 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 per day (mscfpd) of dry gas to the NGL plant, but it has the capacity to push as much as 120 mscfpd.
The pipeline’s route onshore would follow the same path as the fibre-optic cables and would terminate at Hermitage, part of the WDZ which will house the gas-to-shore project.
At present, Government is engaged in negotiations with landowners who will be affected by the project, with a view to offering them appropriate compensation in exchange for their properties.
While the Guyana Government would own the 300MW power plant and NGL plant, it would be recruiting an international firm to operate the project to international standards and best practices.
The People’s Progressive Party/Civic (PPP/C) Administration is confident that this gas-to-energy project would significantly slash electricity costs in Guyana by at least half of what currently obtains.