Liza 1 permit could be extended in line with gas-to-energy lifespan – Vice President

…progress being made on US EXIM loan to partly fund project

With the Liza Phase One permit currently under review, it is important that production of oil and gas is maintained in what is historically Guyana’s first oil producing field. This is according to Vice President Bharrat Jagdeo, who has revealed that the Government could extend the permit to facilitate the gas-to-energy project’s lifespan.

The transformational gas-to-energy project, which is expected to start up in 2024, has a lifespan of over 20 years. However, if the remaining years on the permit are allowed to run their course it would leave the country short of at least five years of gas from the Liza Phase One development. According to Jagdeo recently, however, there is a window to extend the permit.
“The Field Development Plan for the Liza 1 project, that would allow us to give an extension. Because if we’re building the gas-to-energy project and it comes in in 2024, 2025, and the permit expires in 2037, we would only have 12 years more of gas coming in on that pipeline. But the project is built on a 20-year lifespan, that is the numbers are run on that.”
“So, the Field Development Plan and all of that, would allow us once we’ve completed that [review] and it’s about completed, would allow us to move to do that. To allow this to happen to ensure we have adequate gas coming in to generate power. I would urge once again, for everyone here, particularly those who like to write about solar, to look at the gas development plans in Europe. And how they’re moving to develop gas resources,” he said.
Jagdeo recalled that only three years ago, the world was wary of using natural gas as an alternative energy source to fossil fuel. Times have changed, however, and gas has now taken on increased importance on the world stage. He described it as a total turnaround.

Last year, the Environmental Protection Agency (EPA) renewed the environmental permit for the Liza Phase 1 project, with an extension of five years. The Liza Field Development Plan (FDP), has meanwhile been under the Government’s review, with assistance from the United Kingdom (UK) company Bayphase Limited.
Meanwhile, there is also the United States Export Import (EXIM) which the Government had said last year that it would approach for a portion of the funding that will be required for the gas-to-energy project. Jagdeo revealed that progress is being made on this loan, as reported to him by Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh.
“On the loan that is being done. The Minister of Finance has had several engagements with EXIM bank. And from what he said, that is making progress, towards the conclusion of the loan. So, progress is being made in that regard,” Jagdeo said.
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, West Bank Demerara (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.
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 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, 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 will terminate at Hermitage, part of the Wales Development Zone (WDZ) which will house the Gas-To-Shore Project. (G3)