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Oil and Gas Chambers presses for accelerated renewable energy prog.
…recommends subsidies for solar, electric cars, other initiatives
Kaieteur News – The Guyana Oil and Gas Energy Chamber (GOGEC), in welcoming the provisions outlined in relation to the sector by the administration, has posed for future consideration greater engagement to better leverage private sector participation in the accelerated diffusion of renewable energy technologies, including e-mobility solutions.
One of the world’s famous Tesla EVs
GOGEC made public its position in a missive yesterday and pointed to initiatives such as implementation of Electric Vehicle (EV) charging as excellent and sets an example for the shift to a more sustainable and environmentally friendly country.
It noted however, that it is recommended that the Solar EV charging stations be implemented across all government buildings and for Government vehicles to lead the shift to a fully electric vehicle fleet.
Additionally, GOGEC suggested government should consider a reduced tax rate for hybrid and plug-in hybrid vehicles.
“This will encourage customers to purchase more environmentally friendly cars, therefore, reducing the emission of CO2.”
Additionally, GOGEC said, “to further expand the ecosystem of enabling policies, the Government may consider subsidies for installing the Solar PV configurations for residential EV charging.”
The chambers said, too, measures should be extended to the complete solution, which includes: panels, inverters, transformers, and batteries.
To this end, GOGEC said it “looks forward to advocating for the equitable development of all energy resources and the households and industries that rely on them. In this manner, GOGEC continues to applaud proactive policies set out in the National Budget and the Low Carbon Development Strategy.”
Additionally, the chambers noted that the small scale hydro projects at Kumu, Moco Moco, and Kato, and off-grid solar projects, will significantly improve access to affordable energy services with high-quality standards to develop the communities in the interior.
According to GOGEC, since the commencement of oil production in December 2019, the amendment and operationalisation of the Natural Resource Fund (NRF) Act 2021 paved the way for the first drawdown from the fund to finance the national Budget 2022.
To this end, it was noted in Dr. Singh’s speech, “we are pleased to see critical facets of the revised Low Carbon Development Strategy (LCDS) slated for implementation over the year.”
The oil and gas sector, it said, will continue to drive strong double-digit growth over the medium term.
In 2022, production capacity is expected to increase to 340,000 barrels per day (bpd) from 120,000 bpd, with Liza Unity FPSO coming on stream in early 2022.
The current estimate of the gas reserve is 16 trillion cubic feet (Tcf), with projections from Liza 1 and 2 likely at 50 million standard cubic feet per day (mmscfd). Payara will bring an additional 20 mmscfd.
GOGEC in its missive also pointed out that in the third quarter of this year, the Government will hold its first-ever competitive bidding rounds for available acreages of offshore blocks and called this a critical step towards enhancing the value capture from available blocks transparently and optimally.
Based on projections of oil production, oil revenues are expected to reach US$958M by the end of 2022 and US$1.8B by the end of 2025.
Additionally, the entity in its missive took note of announced measures to reduce the fiscal disparity between local and foreign companies operating along its value chain.
“These measures will further accelerate the participation of local firms in the sector,” GOGEC said.
According to the chambers, the revised Local Content Act will support the convergence of national and foreign interests in our finite resources’ equitable and sustainable development for generations to come.
“Greater support to small businesses in the Budget will continue to nurture start-ups and position young Guyanese in the pathways for partnerships and knowledge transfer with foreign partners.”
As such, GOGEC said it encourages continued investment by both Government and private sector in prioritising ISO certifications to comply with globally recognised standards in services essential to harness the immense forward and backward linkages afforded by the oil and gas sector.
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