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Thirty companies express interest in gas-to-shore project
Kaieteur News – Some 30 companies have expressed interest in the government’s gas-to-shore project, which is pegged at US$900 million.
Natural Resources Minister, Vickram Bharrat in an interview with OilNOW said that companies from the United States, China and the European and Caribbean regions have already submitted their proposals.
Minister of Natural Resources, Vickram Bharrat
Locals, the minister told the oil network, have also partnered with regional companies for the project.
While he was careful not to divulge the names of the companies, Bharrat only highlighted some structural changes that have been made.
In the interview with OilNOW, the minister said, “There was a lot of talk by the political opposition about the cost of the project moving from US$600M to US$900M but the scales being looked at are different. They looked at an 8-inch pipeline, but we are looking at 12. Their plan looked at taking the pipeline to Mahaica or Ogle, but we are looking at Wales.”
He added, “We are not only putting a power plant in place but a massive industrial manufacturing plant with a port facility. So, we are using a 12-inch pipeline with a 250 megawatts power plant and 15 kilometres of pipeline onshore…and setting up industries to feed off of that… The task force is still working on the price for the gas and there is a draft on terms of sale.”
Earlier this year, the PPP/C Government had published an Expression of Interest (EOI) for private investors or a consortium to be part of the US$900M project. The EOI which was advertised by the Ministry of Natural Resources, called for a 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 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 the gas for, “Natural gas driven developments and growth.”
The EOI also stated that interested parties can bid to take part in any of the elements individually or collectively. It was noted, however, that 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 is 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 also 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.
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