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Attitude on gas-to-shore project reminiscent of Skeldon factory and the Berbice Bridge

Apr 01, 2021 Letters

Dear Editor,

Recent disclosure that Exxon is presently “in the process of selecting suitable firms to conduct four studies before moving to the construction phase” of our gas-to-shore pipeline is beyond ludicrous. Why Exxon? Has Exxon taken on the mantle of government? Is the government incapable of looking after the affairs of the people in the oil and gas sector?
Our oil boss, having bypassed the project’s economic feasibility by dismissing its necessity as a “no brainer” is reminiscent of the Skeldon factory and the Berbice Bridge. As it seems now, the gas-to-shore pipeline is stalled only for four studies that can only fluctuate the cost from 500 to 800 million US dollars, depending on the design to be dictated by the four studies.
According to our PSA, Exxon should flare only for maintenance of equipment and the bulk of associated gas produced should be reinjected into the reservoirs. So far reinjection of the gas seems to be a burdensome task, allegedly, based on complaints of equipment failure. Presently, all the gas is now being flared by Exxon, contrary to the PSA. After the pipeline is installed, we will have to pay Exxon to transport the gas to shore for as long as there is gas to be sent ashore. Why should we pay for the pipeline which for all intent is to transport the gas and then continue to pay Exxon to transport the gas – sounds ludicrous to me!
Exxon would most likely be using the said compression pumps used for reinjection to propel the gas to shore, why pay them for that while we would be relieving them of the more arduous task of reinjecting the produced gas? How much would we be paying for transporting a cubic foot of gas relative to the market price for gas remains a secret in the VP’s “no brainer” approach.
The VP had said the “renewables are yapping at our feet” and that there is a “short window” of opportunity, in this regard rapid extraction of our oil is encouraged. Sadly this will reduce the life of the project (gas pipeline) from say 45 years to 30 years – when the oil is finished there would be no gas left. Why invest US$800 million to have a “white elephant” in 30 years, when the Amaila Falls project was tipped at US$900 million- knowing that “renewables” are recommended to save the planet? Why not insist that Exxon keep its contractual obligations by reinjecting the associated gas produced, while we invest in renewables – solar, wind farm and hydro.
Rapid extraction of oil to profiteer before the renewables that are “yapping at our feet” will result in large volumes of produced gas daily. How much will be used by GPL and domestic consumption and how much can we sell?
Will Exxon flare what we cannot take or simply pump it to shore for us to do the flaring while billing us for transportation of every cubic foot that comes ashore? Could we be forced to pay Exxon for transporting gas that we have no use for and could that cost, because of the large volume, outweigh the cost for the gas we would be using at world market price?
Yours truly,
Rudolph Singh

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