Private investors/consortium for gas-to-shore project

Jul 13, 2021 News

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…to assist in designing, financing power plant, etc.

Kaieteur News – Despite no detailed financial or other studies being completed, the Government of Guyana says it has finalised the Wales Development Zone (WDZ) as the termination point for the pipeline from the Liza Area in the Stabroek Block, offshore Guyana and as such is seeking private investors or a consortium to be part of the project.

This is according to an Expression of Interest (EOI) advertised by the Ministry of Natural Resources, which said in the invitation that it is calling for Joint participation in the proposed gas-to-shore project with the government and Esso Exploration and Production Guyana Limited (EEPGL)—ExxonMobil Guyana.
According to the advertised EOI, the government and EEPGL are looking for partners “in designing or utilising the outputs from an NGL (Natural Gas Liquids) / LPG (Liquified Petroleum Gas) facility and related facilities.”
This includes, according to the Ministry, design, construction, and financing of a power plant fuelled by Natural gas, where the power will be delivered into the Guyana Power and Light’s (GPL) distribution grid. This is in addition to industries that can utilise Natural gas for, “Natural gas driven developments and growth.”
According to the invitation, interested parties can bid to take part in any of the elements individually or collectively. It was noted however, any submission for the first and third aspects of the project, namely design and utilisation of gas or the industrial park, “must demonstrate the nexus between the projects as detailed.”
Responses to the EOI, the Ministry said, should contain adequate information including the capabilities (technical and financial), track-record, profile and relevant information on the applicant or consortium.
This, in addition to, evidence of financial resources available for the proposed project and should include a business plan.
That plan, the Ministry said, must include a description of the proposed project, details on land required and related infrastructure, required quantities of gas and electricity (capacity [MWhr] and energy [kWhr]), with information on expected pricing, volumes, and ability to manage potential variable gas flows.
The Ministry in its invitation noted too, that the decision on Wales was taken after extensive evaluation of multiple sites with ExxonMobil Guyana Limited (EEPGL). The Wales Development Zone (WDZ), it said, has been identified as the termination point for the pipeline from the Liza Area in the Stabroek Block, offshore Guyana.
The WDZ encompasses over 14,000+ acres of land of which approximately 1,300 acres will be set aside for heavy Industry/gas-related investments. The project, according to stakeholders, is expected to see some 27 kilometres of pipeline being buried from the Crane, West Coast Demerara (WCD) location to Wales, in addition to some 200 plus kilometres of pipeline from the Stabroek Block where the Liza Destiny Floating Production Storage and Offloading Vessel is located.
According to the administration, WDZ will be the location for the termination of the gas-pipeline measuring over 225 km from the Liza Area.
Additionally, it will involve the establishment of a gas-processing plant (GPP) and a Natural gas liquids facility (NGL) capable of producing at least 4,000 bbl./day, including the fractionation of liquefied petroleum gas (LPG).
The private partners will also be expected to take part in the operations of the establishment of a power plant to generate 150 MW, with an additional 150 MW as a second phase in addition to the establishment of an industrial park comprising industries that can utilise gas, steam and/or electricity.
Interested parties have been given up to August 29 to submit proposals.
Additionally, “proposals will be especially welcome for small scale ammonia/urea, protein synthesis, cement, glass manufacture, ceramics, and other industries that rely on gas, steam, or electricity,” the Ministry stated.
It noted too, that responses dealing with power generation should detail comparable projects completed, recommended technology, type and capacity of equipment specification related to the gas needed, back-up fuel optionality in the event of interruptions of Natural gas flow, capability to use rich gas as fuel to account for NGL plant downtime, required gas per MW installed, generation costs, ability to build in a modular fashion, environmental and emissions impacts, and timelines/key milestones.
With regards to the use of additional gases, the invitation detailed that responses dealing with NGLs should provide details of expectations on markets (local and regional), expected input prices, expected sale prices, level of investment on required infrastructure, proposed changes to the current configuration of the existing market, and ability to work with local partners and Government.

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