“No factual basis” – EPA, MARAD on US-sanctioned LOO’s ‘ruptured’ pipeline claims

…says pipeline not active, no gas flowing through

The Environmental Protection Agency (EPA) and the Maritime Administration Department (MARAD) have jointly rejected claims by Opposition Leader Azruddin Mohamed that the US$1 billion pipeline that was laid to bring natural gas onshore for the Gas-to-Energy (GtE) Project is ruptured.
The 250-kilometre (km) subsea and onshore pipeline was installed by ExxonMobil Guyana Limited (EMGL) in 2024. The United States oil major had said previously that the pipeline was filled with nitrogen and sealed off pending the start-up of the GtE Project at Wales, West Bank Demerara.
However, Opposition Leader Azruddin Mohamed recently claimed that the pipeline had been ruptured offshore three months ago – something which the EPA and MARAD have both denied, saying there is no factual basis for these claims.
“The pipeline in question is not currently active, and no gas is flowing through it. As there is no gas passing through the line, there can be no leak or damage of the nature suggested in these reports,” the two agencies said in a joint statement on Thursday.
According to the EPA and MARAD, however, ExxonMobil Guyana has been conducting a scheduled three-month safety inspection of the subsea pipeline involving five vessels along the West Coast of Demerara since May. But during this ongoing exercise, which the public was informed about in a May 25 notice from MARAD, an anomaly was detected and is being looked at.
“The EPA and MARAD confirm that a report relating to the pipeline was received and duly investigated. Following the joint assessment, the matter was determined to be a slight anomaly, which was thoroughly investigated by both agencies. Out of an abundance of caution, further inspections are being conducted to confirm the continued integrity of the pipeline, consistent with standard safety protocols,” the joint missive detailed.
Nevertheless, the EPA and MARAD reiterated their commitment to transparency and safeguarding public and environmental safety throughout the GtE Project, adding that “both agencies will continue to provide accurate, timely updates to the public and urge that facts be verified through official channels before conclusions are drawn that could cause unnecessary alarm among residents of West Coast Demerara.”
The Gas-to-Energy Project will see natural gas being pipelined from the Stabroek Block offshore to the Wales site, where a 300-megawatt combined-cycle power plant and a Natural Gas Liquids (NGL) facility are being built by US-based Lindsayca.
The 300MW gas-powered facility is slated to come on stream by this year end, delivering cleaner and cheaper electricity to households and businesses.
The 12-inch pipeline, some 220km subsea and 30km onshore, will bring some 50 million standard cubic feet per day (mmscfd) of dry gas from the Liza Phase One and Phase Two offshore projects to the GtE project.
However, only 40 per cent of the pipeline’s capacity will be used in the first phase of the GtE project to gas up the power plant and NGL facility.
With the pipelines having the capacity to push as much as 120 mmscfd of gas, the Guyanese Government is moving ahead with Phase II of the Gas-to-Energy project that will utilise the remaining 60 per cent capacity of the pipeline to bring additional gas onshore.
The GtE Phase Two will see the construction of another 300 MW power plant and NGL facility at the Wales site, using only 20 mmcfd. With the remaining natural gas available, the Government is planning to set up other major industrial projects, including a cooking gas bottling plant and a fertiliser manufacturing plant in Wales.
Already, the Government has received bids from at least 10 companies to design and build an Ammonia/Urea Plant at the Wales Industrial Zone, utilising the rich natural gas being produced offshore Guyana.
Similarly, another 10 companies have also submitted proposals to design, build and operate the cooking gas bottling facility in Guyana. The bids for these two major projects are currently being evaluated.
Meanwhile, just last month, it was announced that Trinidad and Tobago-based Phoenix Park Gas Processors Limited (PPGPL) and local partner GuyGas Inc were selected for operation and maintenance of the NGL plant in Phase One of the GtE Project.