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Looming oil and gas sector… GPL would be interested in using gas for power generation
GPL Board Chairman, Robert Badal
With Guyana on the verge of establishing its oil and gas sector and with ExxonMobil scheduled to begin pumping oil in 2020, the Guyana Power Light (GPL) would more than likely be interested in capitalising on the extracted gas.
This is according to Chairman of the GPL Board of Directors, Robert Badal. On the issue of renewable energy sources to generate electricity, Badal said that it is his intention to move towards gas. This natural gas can be used with gas turbines to produce electricity.
He said that gas coming to the shores of Guyana via the Exxon Mobil agreement with the government of Guyana is not a certainty at this point. Cognizant of this, Badal said that if the natural gas is sourced from Trinidad and Tobago then he believes that GPL should move towards gas.
His reason for this is that gas is cleaner, environmentally friendly, lower investment and maintenance cost and low waste disposal. Badal explained that the only question is the reliability of the supply. This has to be examined by GPL.
He said that at present the company has 32megawatts of power being generated by units that are over 22 years old. Hence, GPL has to begin thinking how that will be renewed.
“Subject to Government’s approval, we will be looking for interests in supplying those 32megawatts based on gas. That’s the strategy we are gonna follow.” Badal said that Government seems to be in favour of the move, based on his discussions with Public Infrastructure Minister, David Patterson.
He said that using gas will be the new direction away from heavy fuel. Badal said that GPL will be looking to proceed with the initiative soon. As it relates to whether any interests have been expressed, Badal said that nothing concrete has been expressed and that GPL is waiting until it issues a formal request for expressions of interest.
“It is only when an RFP (Request for Proposal) go out then you will see whether you have genuine interests. I’m sure there will have companies out there with money who will want to make such an investment.”
Badal explained that planning has to be done long in advance and not when there is foreign funding available to effect change.
“We should be able to do things on our own resources and we have to look at trends. We have focused too much on heavy fuel so far and now with the possibility of gas (from ExxonMobil) or supplied from Trinidad or Miami or in the Caribbean, the prospect is good.
“That is the direction we have to take but we have to do that now. We can’t wait until these units already over 22 years old reach 30 years to go and do that. That was the nature of the planning then, they wait for the money. Now that GPL has its own resources we can go do that.”
Badal said that GPL would prefer that electricity generation is undertaken by private entities rather than GPL investing in such. He said that it would be better if GPL spends it resources to look after the grid and let the private sector finance all the new generation.
“It is my opinion that we invite private sector companies to do it and we focus on the grid. My strategy is that all new generation be financed and built by the private sector and GPL can use its finances to improve the grid. The generation is the easy part; the management of the grid is the hard part.”
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