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Govt. to conduct four studies on gas-to-shore project – VP defends location
Former Wales Estate, West Bank Demerara.
Kaieteur News – Vice President, Dr. Bharrat Jagdeo said yesterday that the government will conduct four studies into the proposed gas-to-shore project before it moves to implement its construction plans. This, the VP said, while noting that there have been adverse comments in the press that the government may be rushing forward without ensuring the project’s feasibility.
The project would utilize associated gas from ExxonMobil’s Liza Phase One project, which has been in operation since December 2019. ExxonMobil Guyana President, Alistair Routledge has said that the company can bring as much as 50 million cubic feet of gas to shore per day, more than Guyana needs.
The government has received calls from sections of the media and transparency advocates to prove the economic soundness of the project, by releasing studies on its feasibility.
“So several studies are in the process of being contracted,” he said during a press conference at the Arthur Chung Convention Centre. “There is a geophysical study, a geotechnical study, a lidar study, and an environmental impact study.”
The results of those studies, which he said should have been done since 2016 under the David Granger administration are expected to inform the design of the pipeline. The Vice President said the pipeline construction is expected to last 18-24 months, which is why the government has set a target of mid to end of 2023. He considers this a realistic projection. The government hasn’t yet decided where the pipeline will terminate but when it does, it will go to tender for the construction of the power plant.
“We can only do that,” he added, “when we know where the pipeline will terminate and the drying facility would be established, consistent with the master plan that I spoke of earlier. So this is all being carefully done and the energy project is moving forward.”
The Vice President also responded to concerns about the location for the onshore facilities. The government wants to use the former Wales Estate, West Bank Demerara.
“Let me make it clear that we have had internal assessments of various sites for landing the pipeline,” Jagdeo said. He indicated that an earlier preferred site, the Greenfield-Mahaica area, was eventually put aside because the lands are privately owned.
The government decided, upon assumption of office, that it would not bring the facilities to Region Four in places such as Ogle or the East Bank of Demerara since those areas are set for major development.
“The price of the land is extremely high,” he said, “and a lot of the industries that we have to place around the oil and gas facility might be industries that are a bit polluting.”
The government also took into consideration, in its decision not to bring the facilities close to the city center and resistance from the public to the establishment of certain chemical facilities on the East Bank of Demerara.
The Environmental Protection Agency (EPA) had been considering applications for the construction of five chemical warehouse facilities in support of the oil sector, all near residential areas and without requirements for Environmental Impact Assessments (EIA).
The VP said that government thought it best to explore areas where there are large virgin lands and low population density. Two areas, Crab Island and the Wales Estate, were being considered. According to Jagdeo, the Wales site turned out to be the better option as it is estimated to be less costly. He said the government is now in the process of creating a master plan for the development there, which would include “where the pipeline would terminate, where the gas drying facilities would be located, where the power plant should be located, what are the industries we need in the area, etc.”
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