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No current plans beyond Liza 1 for gas-to-shore project – VP Jagdeo
Vice President, Bharrat Jagdeo, during the gas-to-shore briefing on Monday.
Kaieteur News – ExxonMobil Guyana is forging ahead with plans to have at least 10 Floating Production, Storage and Offloading (FPSO) Vessels producing in the Stabroek Block over the next decade, but even as the ruling administration also pursues a gas-to-shore project to capitalise on the available associated gases, there is no current plan beyond using the resource from the first oil field, Liza I.
This, according to Vice President, Bharrat Jagdeo, who this past Monday led a press engagement at the Arthur Chung Convention Centre (ACCC) aimed at putting to rest the speculations in the public domain over the multimillion-dollar project.
Addressing the stakeholders gathered at the ACCC, VP Jagdeo, when asked about the administration’s plans said, “We’ve not contemplated the second project because the numbers on this project as a standalone project are so good, it’s a dream set situation. If you’re a private investor, somebody would want to invest in a project like this.”
Dr. Jagdeo also responded to queries on additional costs to the project with the coming on stream of additional production fields, saying, “…the monetisation is so, you can monetise this project quickly and make a lot of money, the good thing is it would belong to the State.”
With regards to the gas which will be had from the Liza I production field, Dr. Jagdeo told stakeholders that in Guyana the oil exploration companies are not in fact drilling in search of gas fields: “What we have here are wells that are drilled to take out the oil but they let gas come in, associated gas, so there is not like a gas well.”
According to Jagdeo there could very well be large discoveries of gas fields like in neighbouring Trinidad and Tobago or Venezuela saying, “I don’t know if they may at some point in time hit a large gas reservoir that could warrant its own development on its own that could then move you into the big leagues where you can start producing large quantities of like ammonia or urea and stuff.”
The Vice President said, “…with the ones we have here now with the gas that we’re going to get will be small quantities for domestic demand.”
He noted that the pipeline, which will be used for the gas-to-shore project, would have the capacity to bring to shore more than double what the Stabroek Block operator has committed to, so “that is a bonus,” and that the current shelf life for the Liza 1 field is estimated to be some 20 years.
Additionally, the Vice President noted that as it relates to actual revenues to be had from the project, “we haven’t monetised the Natural gas linkage as yet.”
“I doubt,” he said, “they’re going to make any money on the pipeline; where the project will make some money is in the sale of the Natural gas and other things that are there,” citing as example the sale of Liquefied Propane Gas (LPG).
The Vice President did concede however, “…we haven’t worked out the framework and monetised that as yet because we’re focusing wholly on the studies and the project parameters at this time.”
He posited that once the administration has managed to monetise revenue to be had from the excess associated gases to be had from the first field, “then that will give you a figure, a revenue figure and then when you add all of the other sale of the other facilities, of the other by-products that would give you a revenue figure.”
According to Jagdeo however, “We haven’t gone there as yet – we’re looking mainly at the studies now to deal with this. Once we settle that this is a big gas project and bringing gas-to-energy is a feasible option, everything else is a bonus.”
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