Talks with ExxonMobil on Natural gas for electricity, another example of ‘plantain chip vision’- Jagdeo

Sep 21, 2017 News

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By Abena Rockcliffe-Campbell

The idiom “don’t put the cart before the horse” is a stark reminder of the statements made by Opposition Leader, Bharrat Jagdeo, when he spoke of the current talks between Government and ExxonMobil.
This is specifically as it relates to the quest to have ExxonMobil channel natural gas to shore.
Jagdeo criticised the APNU+AFC Government for what he called a “guava cheese and plantain chip vision.”
Jagdeo, the PPP’s General Secretary, said that it is such shortsighted visions that will allow the government to enter into talks with ExxonMobil for the company to supply natural gas to fuel electricity without careful consideration of the variables.
Jagdeo’s statements were made on Tuesday at a press conference, held at Freedom House.
The former President boasted that he had a good plan for Guyana. He said, “I was clear where Guyana was going then and I am clear where Guyana is going now. Even today, I can tell you sector by sector what our plans were for the next 10 years. I can do so extensively, too, without having to go back and find out. I can do that now.”
Jagdeo said that the PPP/C was focused on creating wealth for Guyana.
“We were aiming for lofty goals that would have made this country wealthier and its citizens better off but now we have gone back. This president (David Granger) has a vision about guava cheese and plantain chips” said Jagdeo.
The politician said that citizens need to question that sort of vision that would result in no improvement in the quality of life being offered to Guyanese at home.
He said, “There is no vision. This government is going to talk to ExxonMobil about bringing gas to do electricity when no feasibility study has been done comparing the alternatives.”
Jagdeo said that the prudent course of action would have been to examine the variables before going to the company.
The former president said, “They should have compared the alternatives. This is another fossil fuel venture, instead of comparing hydro (electricity) vs. gas fires power plants, because you can’t do solar and wind as base load… in the long run, hydro is the most reliable.”
Jagdeo continued, “So suddenly, ExxonMobil is asked to bring the gas to fund a power plant here on shore but we do not know if it is feasible or would this alter the agreement.”
Guyana is heavily dependent on fossil fuel for the running its engines across the country for fuel generation. It accounts for a major chunk of foreign exchange with the Guyana Power and Light Inc. (GPL) which spends up to US$100M annually to import oil.
Compared to Guyana’s current use of liquid fuels for electricity generation, natural gas is cleaner. Its use for energy production could reduce the country’s fuel bill, and in turn, reduce the cost of electricity.
The Government of Guyana and technical members of ExxonMobil met in Georgetown yesterday.
According to the Ministry of Public Infrastructure, the technical working group will focus on natural gas and the surrounding commercial and economic issues as it relates to offshore transportation for onshore power generation.
MPI said that the working group will continue dialogue on local and international power generation experiences, including domestic infrastructural requirements and considerations for the potential of natural gas into gas-fired power generation. It has been said that Guyana’s current engines, the majority of them Finnish-made, by Wartsila, can easily be configured to use natural gas, from the normal diesel and heavy oil.
“The agenda will also include an overview of commercial power generation structures and approaches to power investment. It is expected that capacity building for local and key technical government officials will be the major output of the two-day session,” MPI disclosed.
According to MPI, today’s talks will be particularly important in light of the recent consultations held by the Ministry of Natural Resources on local content policy and its focus on maximising benefits and value retention from Guyana’s petroleum resources through local content and capacity development.
“As the first of such sessions, the Government of Guyana looks forward to furthering its understanding of the technical and key dynamics of proposed projects in an effort to diversify the energy mix in Guyana,” Minister of Public Infrastructure, David Patterson explained.
Patterson further emphasised that the sessions will not serve as an occasion for negotiations or review of contractual obligations between Guyana and ExxonMobil.
Rather, he said, “It is intended to continue dialogue, with an intended wrap-up summary, including presentations, updating key ministries on the joint discussions having taken place over the two-day session.”

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