Latest update January 3rd, 2025 2:50 AM
Clarity needed on gas generation capacity of Stabroek Block – Int’l Consultant
– Chris Ram says asking questions not anti-project
Kaieteur News – With little information available to the public on the gas-to-energy project which is now pegged at US$1.3B, Co-Director of Energy at Americas Market Intelligence (AMI), Arthur Deakin, on Tuesday night during a panel discussion on the project was keen to note that while there is need for the project to come on stream, clarity is needed on the gas generation capacity of the Guyana’s largest oil reserve, the Stabroek Block.
Chartered Accountant and Attorney-at-Law, Christopher Ram
Other panelists on the OilNow gas-to-shore discussion were Chartered Accountant and Attorney-at-Law, Christopher Ram, and financial analyst, Joel Bhagwandin. Deakin first stated that he is aware of the negotiations ongoing between the Government of Guyana (GoG) and American oil giant, ExxonMobil, on the price of the gas and who is going to build the actual power plants. While noting that he believes that it was determined that Exxon would build the pipeline, Deakin pointed out that there still needs to be a Request For Proposal (RFP) for who is going to build the power plant and the liquids facility.
He added that at this point, in terms of energy security around the world, it is more important than ever to have the gas-to-shore plant come on stream as quickly and as safely as possible. However, while making further comments, Deakin highlighted that there is still no clarity on the amount of gas that has been found in the Stabroek Block.
“There are estimates, you know, 20% of it is supposed to be associated gas, but I think we need more concrete figures to know exactly what is realistic in terms of the generation capacity,” he added.
Deakin pointed out that it has been said that the power plant will produce 250 megawatts, but what is not known is how much of the gas that can be piped out from the Liza 1 well to shore. As a result, he emphasised the importance of greater clarity on the issue, which he stated must be addressed.
Co-Director of Energy at Americas Market Intelligence (AMI), Arthur Deakin
Another panelist, Christopher Ram, while speaking on the gas-to-shore project, noted that while there is no doubt about the benefits of the project, he pointed out that asking questions about it does not mean that you are anti-project, but in fact, means that there should be a more informative discussion.
In fact, Ram said, “So in speaking about the project, we can all say yes, it certainly has benefits…the devil as they say is in the details.” The chartered accountant also pointed out that while it is being said that the project will cut electricity cost by half, when the aforementioned will be possible is not known.
Moreover, Ram stated that there is no question that any country should be looking at reducing its electricity generation costs as well as reducing its carbon footprint. However, he noted that it is not necessary for a long-term solution, but in terms of an energy mix, it should be done.
According to reports, the gas-to-shore project was first touted as a US$900M inclusive of a gas pipeline, a gas fired power plant, and related processing facilities, Budget 2022 has confirmed this to be untrue and has in fact now confirmed a new price tag in excess of US$1.3B.
The government has committed to providing some $520M in total, towards the gas fired power plant and has since allocated US$20M towards the project.
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