Thorough, independent studies critical for gas-to-shore development

Thorough, independent studies critical for gas-to-shore development – US Analyst

Mar 16, 2021 News

AMI Analyst, Arthur Deakin.6

Kaieteur News – In order for the government to prudently manage the anticipated gas-to-shore development, thorough, independent studies will be critical. Making this fundamental point is analyst at a United States (US) agency, America’s Market Intelligence (AMI), Arthur Deakin. His comments in this regard were forthcoming during an interview with Kaieteur Radio in January.
AMI, which is a US management consultant firm, is known for providing its insights which unlock opportunities in Latin America via market intelligence, research and analysis.
During the interview, Deakin was asked whether he believes that Guyana should move forward with the gas-to-shore project and what steps the country ought to take to ensure that it is financially sound.
In response, the analyst gave his support to the gas-to-shore project and said that it would be beneficial for Guyana to peruse it. In giving context to this position, Deakin indicated that he has seen the electricity tariffs in Guyana and noted that these tariffs rank among the highest in the region
“That is something that hinders business development; it discourages multi-nationals from establishing operations there,” Deakin said, as he added, “The reason why it is so expensive is that Guyanese businesses rely on generators that use diesel, which is very expensive and isn’t as effective as producing energy. So that high cost is something that is going to be reduced by this gas-to-shore power plan.”

Finding the right split between the government and ExxonMobil’s investment in this plant is important, Deakin said. One other thing that is also critical is for “very thorough and independent studies to figure out what makes sense in terms of the development of the project; making sure that that it is conducted by an independent organisation,” Deakin pointed out.

He continued, “I think that that is very important. I think that using existing infrastructure already in place for the oil extraction; being able to take advantage of any of that for exporting the gas. That is also going to be huge in making it economically viable, and then just having proper financing either from the government or Exxon or even some other private investors that would ensure that the capital is in place for this gas-to-shore project.”

Notably, Deakin’s comments on thorough, independent studies on this highly-debated project fit in line with recent news that ExxonMobil will be selecting firms to conduct studies for the gas-to-shore project. These studies include LiDAR, which stands for Light Detection and Ranging, which is a remote sensing method that uses light in the form of a pulsed laser to measure ranges; geophysical and geotechnical studies; as well an Environmental Impact Assessment (EIA).
The government is yet to reveal whether it will pursue a financial study on this project, which will aid in ascertaining its financial feasibility.

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