Work on gas-to-energy project remains on schedule – Bharrat
…initial road works to access offloading facility completed
As the People’s Progressive Party/Civic (PPP/C) Government continues its efforts to operationalise the transformational gas-to-energy project, preparations are well under way, initial road works are completed and the project remains well on schedule.
In an exclusive interview with this publication, Natural Resources Minister Vickram Bharrat explained that he has personally visited the construction site, located a few villages past the former Wales Sugar Estate on the West Bank Demerara (WBD).
“I can tell you that the road works, the initial road works have been completed. Because I managed to drive straight to the wharf facilities. The materials offloading facility. It’s being built right now. The early works are being done through Exxon. So that wharf facility is being built, you can drive up to it right now,” Minister Bharrat said.
“There are a number of equipment on the ground right now, doing the heavy haul road that will lead directly to the site, where the power plant will actually be. And that calls for a lot of preparation and a solid foundation, because of all the vibration. So, we are on schedule. I was there and spoke to the team and they indicated we are within schedule. So, we don’t anticipate any delay with that project.”
The Minister noted that Exxon is also moving ahead with its pipeline and at some point in time, physical works will be more apparent. He made it clear that the Government does not anticipate any delays with the project.
Added to this is the fact that a US$759.8 million Engineering Procurement and Construction (EPC) contract for the power plant and Natural Gas Liquid (NGL) plant has already been awarded to United States (US) companies CH4 and Lindsayca
Meanwhile, Engineers India Limited (EIL) was awarded a US$22 million contract to supervise the construction of the power plant and NGL facility. Their contract was signed a few weeks ago, while President Dr Irfaan Ali was in India.
“They will be our site manager or overlook the construction of the power plant and the NGL plant, to ensure it’s built based on specifications and report back to us. And then of course, the gas-to-energy project unit would have oversight too in terms of the actual construction,” Minister Bharrat explained.
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 NGL Plant and the 300-megawatt (MW) Combined Cycle Power Plant at Wales, 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.
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.
Hence, it was agreed that the power plant and the NGL plant would be done under a combined Engineering, Procurement and Construction (EPC) process. The aim is to deliver rich gas by the end of 2024 for the power plant while the NGL facility is slated to be online by 2025.
An in-depth review is meanwhile expected to be conducted on the gas supply agreement from oil giant ExxonMobil for the gas-to-shore project, with the Government going out to tender for a consultant to conduct the review and provide legal and commercial advisory services. (G3)