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Gas-to-Shore project binds Guyana to fossil fuels until 2049 – Article 13
Kaieteur News – Civil society group, Article 13, has warned that the Gas-to-Shore Project will tie Guyana to fossil fuel more than 20 years down the line, even as government steams ahead with its “green agenda”.
The body made these observations in a statement to the media on Friday, as it reacted to the passage of Budget 2022.
According to Article 13, “Budget 2022 contains a provision of G$20.8 billion (for the) Gas-to-Energy project, as a core component of the still to be adopted Low Carbon Development Strategy. By approving G$20.8 billion for this project, Guyana is bound to a dependence on fossil fuels to 2049.”
During his Budget presentation, Minister with responsibility for Finance, Dr. Ashni Singh, explained that “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), and Payara will bring an additional 20 mmscfd.”
The project, he said, will allow the country to phase out the use of expensive and carbon-intensive heavy fuel oil and is targeted to reduce costs substantially below the current levels. According to Dr. Singh, the project encompasses the establishment of a power plant to generate 300MW of power as well as a Natural Gas Liquids (NGL) plant that will cover domestic demand. The project also entails the construction of a 225 km 12-inch pipeline to transport the guaranteed minimum of 50 mmscfd of natural gas from offshore Guyana to the Wales Development Zone.
The civil society group, which comprises of transparency advocates and analysts, such as Attorney-at-Law, Christopher Ram and Yog Mahadeo, has clearly registered their concerns about the 2022 Budget.
For instance, Article 13 said it was particularly concerned that several areas for which billions of dollars are being appropriated, vague details were made available for public scrutiny. “For example, there is G$22 billion for “payment of retention and completion, construction and rehabilitation of roads” which does not detail the network of roads being undertaken,” the body highlighted.
Similarly, there are areas of non-capital allocations made into the capital budgets, such as media campaigns as well as cash provisions for “humanitarian and other activities” which are not clarified, Article 13 noted. “These need careful examination,” the advocates posited.
On the other hand, the organisation complained that this year’s Budget seems to be aimed at serving the business class, while the average Guyanese does not appear to benefit in the same degree.
To this end, the body has contended that businesses and oil companies will receive tax breaks on vehicles and equipment, meanwhile a mere $3,000 is offered to pensioners who are barely managing to feed themselves.
“Article 13 welcomes the emphasis on food security as a priority but wonder whether the key focus on non-traditional crops such as broccoli, cauliflower, carrots, spices and fresh flowers destined for overseas markets offers any such security. Worse, such a policy can have the potential of reducing the availability and increasing the price of traditional agricultural products for the average Guyanese,” the advocate group pointed out.
Even more importantly, Article 13 said it was very concerned about several open provisions in the Budget, involving billions of dollars of cash spending, without adequate guardrails to prevent malpractices and corruption.
This is so even as the Public Procurement Commission for example, is yet to be established to ensure government contracts are properly awarded.
In this regard, the transparency body has concluded that a mere four days were not enough for a credible review of the country’s largest Budget in history.
“Finally, Article 13 considers the existing arrangements for the presentation and consideration of the National Budget to be inappropriate in the modern era. An urgent revamp is necessary,” the body urged.
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