Exxon now tells Guyana it will sell natural gas liquids to third parties; dry gas to be sold here

Jul 11, 2021 News

– Govt. did not disclose this key detail at gas project presentation

Kaieteur News – About four months ago, Vice President, Dr. Bharrat Jagdeo, held a press conference at the Arthur Chung Conference Centre where he spoke to the reasoning behind government’s pursuit of the US$900M gas-to-energy project. The local oil boss articulated to the media, in the presence of his technical team, that the project, which involves connecting an offshore pipeline from the Stabroek Block to an onshore pipeline on the West Bank Demerara, would result in electricity costs being slashed by a minimum of 50 percent. He also noted that since it is cleaner than heavy fuel oil, Guyana’s carbon footprint would be reduced.The Vice President was also clear when he said that the government is in negotiations with ExxonMobil regarding the price to transport the gas from the Stabroek Block onshore.

Vice President, Dr. Bharrat Jagdeo.

However, what the Vice President did not say was how ExxonMobil stands to benefit tremendously from this project.
This crucial detail only came to the fore during a scoping meeting that was held by ExxonMobil Guyana on Friday last in collaboration with the Environmental Protection Agency (EPA). The meeting is one of several being held to hear the recommendations from citizens on what should be the parameters of the project’s Environmental Impact Assessment (EIA).
An EIA is a process that involves evaluating the likely environmental impacts of a proposed project or development, while taking into account inter-related socio-economic, cultural and human-health impacts, which are beneficial and adverse.
During the meeting, it was revealed that the true purpose of the project is to bring the gas-to-shore, following which, ExxonMobil would be selling the Natural gas liquids to third parties and the portion that remains, being dry gas, would be sold to Guyana for its electricity needs. Confirming this at the Umana Yana was ExxonMobil Guyana’s Production Manager, Mike Ryan.

ExxonMobil Guyana’s Production Manager, Mike Ryan.

During an engagement with citizens and members of the media on the project, Ryan was asked to say if Natural gas liquids would be sold to Guyana. He did not give a direct answer but confirmed that the gas would be sold to third parties while adding that ExxonMobil would not know the final destination of the gas after that.
It was on June 27, 2021 that this newspaper published an article on the devastating effects this project could have on Guyana’s marine life. This was confirmed following a perusal of the project summary that was submitted to the EPA.
The first 19 pages of the 27-page document speaks glowingly about the construction, commissioning and operational aspects of the project while noting that it will create employment and lead to cheaper electricity rates for years to come. But what is buried at the bottom of the summary speaks volumes about the potential this project holds to have a devastating impact on the environment.
ExxonMobil in the document noted that the project could impact Guyana’s marine geology and sediments. It said this could occur through the installation of offshore and non-routine or unplanned events, which was not explained. Regarding the possible effects on human life and the environment where this is concerned, ExxonMobil said it could result in the “Disturbance of the seabed during offshore pipeline installation activities, has the potential to affect benthic habitat and cause death/injury of benthic fauna.” In short, any marine life that is near or close to the seafloor where this project is being done is at risk of being killed or injured.
The oil giant goes onto state that the project has the potential to affect some marine fish in the project area by way of activities such as underwater sound generated by marine component operations and activities, ship strikes, lighting on offshore pipeline installation vessels, wastewater discharges, offshore pipeline construction, hydro testing discharges, vessel movements, operational effluent discharges, and non-routine or unplanned events which again was not explained. Exxon noted that the foregoing ecological impacts could potentially have ramifications for commercial and/or subsistence fisheries.
It should be noted that ExxonMobil in collaboration with the government, is moving ahead with this project at a time when the world is moving away from fossil fuel based projects. In May for example, this newspaper had reported on the United Nations’ (UN) call for a shift in the policy of countries worldwide, to move away from supporting fossil fuel projects through financing such as subsidies, towards renewable energy and the promotion of the transfer of technology to developing countries.