T&T oil expert says gas-to-shore project an “absolute must” for Guyana

— requisite studies should be done

The importance of the gas-to-shore project that will be rolled out by the Government in Guyana is such that Trinidad and Tobago (T&T) expert Anthony Paul described it as an “absolute must” for Guyana.
Paul, who was part of a panel of experts last year that looked at making recommendations for Guyana’s Local Content Policy, was quoted by online publication Oil Now as questioning what would be the next move for Guyana if it were to walk away from a project that is a must if it wants to expand its industries.
He noted that should Guyana go the route of full renewables at this stage, there are key questions that have to be answered. These include where the country will get the equipment from and how will foreign exchange be earned.
On the other hand, he noted that an energy mix has many opportunities for growth and development on an explosive scale. Paul also advised that Guyana should not rush to make decisions on a future trajectory while also forsaking its present realities.
“There are so many opportunities, for big, medium or small-scale plants, the latter of which Guyanese can own and operate to turn gas to LNG, diesel, LPG, power, chemicals, animal feed etc,” he said, though he cautioned that the relevant studies must be done.
“It’s not just how quickly you produce oil; it also means how you deal with the gas. With 20 per cent of your reserves as gas, you cannot ignore it. The responsible thing to do would be to pursue it, don’t leave it as an afterthought,” Paul added.
The gas-to-shore project is a game-changing initiative that will see gas from the Liza Field offshore Guyana being pumped onshore to generate power. The main objective of the initiative is to transport sufficient gas from the Stabroek Block’s petroleum operations to supply some 200-250 megawatts of energy to the national grid, leading to a significant reduction in electricity costs.
President Dr Irfaan Ali had previously said the landing of the gas-to-shore pipeline in Region Three would lead to “big industrial development taking place there that is linked to not only power generation and a power plant.” He also said the investment on the Demerara River’s shoreside would create massive opportunities and a trickle-down effect.
Soon after the Government issued permit licences to Exxon for the Payara Development Project last year, Jagdeo had announced that the Government would turn its attention to negotiating the gas-to-energy project.
He had pointed out that Guyana is generating at nearly 17 to 20 cents per kilowatt/hour. As such, he noted that the project could cut the cost of electricity in the country by more than half. To this end, he had announced that a team has been set up to start negotiations on the gas-to-energy project, with the Government eyeing 2023 to bring the project to fruition.
And indeed, a Gas-to-Shore Project Advisory Committee headed by former National Industrial and Commercial Investments Limited (NICIL) Head Winston Brassington was set up soon afterwards to look at various locations for the gas-to-shore project.
A number of factors including geotechnical, geophysical and environmental were examined before Vice President Jagdeo announced recently that the Government had settled on Wales to land the pipelines for the project.
Meanwhile, Prime Minister Mark Phillips, who has responsibility for the energy sector, has previously said that the Government is looking to produce 200 megawatts of power from the gas-to-shore project by 2024.
Exxon has said that around 30 to 35 million cubic feet of natural gas would be required for the gas-to-shore project. Recently-released data from Norwegian research company Rystad Energy had indicated that less than 20 per cent of the 1.8 billion Barrels of Oil Equivalent (BOE) discovered last year was gas.