Latest update November 21st, 2024 1:00 AM
CGX deep water port for Crab Island
Canada-based oil and gas exploration company CGX Energy Inc. is to set up a deep water port at Crab Island, located at the mouth of the Berbice River.
This was disclosed by CGX Executive Chairman Suresh Narine, who spearheaded a recent visit to the area.
It was disclosed that the port will take shape on the banks of the island since it has been dubbed “a strategic point.” .
Extensive work on the project has already begun, Narine said.
He added that the company has a substantial bid out to do a breakwater (a barrier built out into the sea to protect a coast or harbour from the force of waves) along the entire seashore.
Crab Island, the location designated for the port
“Here is where we would create a platform into the Berbice River to catch the channel now”.
The first phase of the project is projected to be completed within 18 months where fuel, decanting capacity, tank storage capacity and more will occupy the port. The overall project is expected to be completed in three years.
“It’s a three year massive build out and between US$180 M to US$200 M of additional capital expenditure. That may change depending on if additional partners come on board but the current design of the project is between that cost, the revetment alone is around $100 M (Guyana currency).
It is expensive but the returns and investments are good and of course the impact is a lasting one.”
Narine also said the necessary permits are already in place.
The Chairman said that CGX is open to provide services to oil and gas giant Exxon Mobil but is not dependent on Exxon.
“We can’t say that we are only building because of only Exxon because of the amount of exploration that has to be done on the basin, because of the fact that we anticipate that not only Exxon will have commercial finds…we anticipate traffic from across the border in terms of shipping and because of the existing business in the agro sector.”
“CGX alone has to drill five wells, the savings that will receive from using our own facility is tremendous”, Narine said.
Additional challenges include the logistics of the construction and labour; but skilled labour he said is vastly available in Region Six.
The company is currently utilizing 55 acres of land that was leased to the company for 50 years and is owned by CGX’s subsidiary, Grand Canal Industrial Estate.
Also on Friday, students of the Youth in Natural Resources Apprenticeship Programme from all the regions in Guyana were given a tour of the CGX logistics site at Seawell, Berbice and Crab Island.
The programme is said to be the brainchild of Minister of Natural Resources Rapheal Trotman and was done to allow students grasp knowledge by experiencing rather than being confined to the classroom.
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