Some Crane, Canal Polders residents will be prohibited from developing land- Gas-to-Energy impact study

Apr 25, 2022 News

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Kaieteur News – The Environmental Impact Assessment (EIA) submitted by the Environmental Resources Management (ERM) for the Wales Gas-to-Energy project, has signaled that some land owners in Crane, Canal Number One and Canal Number Two, in Region Three may not be allowed to grow crops or develop new structures that may interfere with the pipeline to be laid by Esso Exploration and Production Guyana Limited (EEPGL).
The document said that one residential property within the planned onshore pipeline route about 175 meters south of the shore crossing may have to relocate, along with four other dwellings located within 500 meters of the heavy haul road and temporary materials offloading facility (MOF).
EEPGL was keen to note that the government is responsible for Project-related land acquisition but the company will support the administration in developing and implementing a ‘Resettlement and Livelihood Restoration Strategy’ aligned with “international standards”.
When it comes to land use, the oil company explained that the project may result in a change of land ownership or tenure for all or part of a property, parcel, or land use area. It explained that a 12.2 meter wide permanent right of way (ROW) will be established to aid in operation and maintenance of the onshore pipeline.
As such, any land that falls within the permanent ROW will be frozen. The document did not say how many homes will be affected by this ROW. According to the document, “Land use in the permanent RoW will be restricted and growing crops or construction of any structures will not be permitted in the permanent RoW. The legal formation of the RoW may result in changes to existing private property boundaries and/or the details of licences, leases, permits, or other tenures related to the use of affected public lands.”
The company said that the ROW will be “minimal in width and largely aligned with the existing canals and drainage channels” and concluded that the impact on land ownership and/or tenure will be of minor significance during the construction and operations stages, even in the absence of specific information about private properties or other land tenures.
The ROW, according to the EIA crosses populated areas in the vicinities of Crane, Canal One, and Canal Two. EEPGL pointed out that populated areas within these communities will be crossed by horizontal directional drilling (HDD) to avoid or reduce disturbances to properties but the restrictions with the ROW will still be in effect.
Land access

The environmental impact assessment goes on to explain that agricultural activity in other areas may also be impacted, as some farmers may be denied access to carry out their agricultural activities.
According to the EIA, “Agricultural activities (crops and livestock) are the most significant land uses in the Primary Study Area. The Project’s use of land during the Construction and Operations stages will reduce access to affected land for agricultural or other purposes. This loss of access could result in temporary and/or permanent economic displacement for people who may depend on these lands for their livelihoods, employment, and/or income-generating activities.”
The displacement of agricultural land use is expected to occur along the onshore pipeline route near Crane, and west of West Minister / Lust-en-Rust and between Canal Number One and Two where rice, pineapple and mixed crops are planted, respectively.
The project
The Gas-to-Energy project is being pursued by Esso Exploration and Production Guyana Limited (EEPGL), on behalf of itself and its coventurers (Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited). It proposes to bring the associated natural gas, produced from the Liza field in the Stabroek Block, to shore for use.
The Government of Guyana is pursuing a separate project to construct a power plant that would use a portion of this associated natural gas as a fuel source. Accordingly, EEPGL, at the request of the Government, is proposing the Project to provide fuel for the Power Plant.
Project will involve capturing associated gas produced from crude oil production operations on the Liza Phase 1 (Destiny) and Liza Phase 2 (Unity) Floating, Production, Storage, and Offloading (FPSO) vessels, transporting approximately 50 million standard cubic feet per day (MMscfd; 1.4 million standard cubic meters per day [MMsm3/d]) of rich gas via a subsea pipeline and then an onshore pipeline to a NGL processing plant, treating the gas to remove NGLs for sale to third parties, and ultimately delivering dry gas meeting government specifications for use at the Power Plant.
Construction will begin after the company receives all necessary authorizations, with a target date of August 2022 for start of NGL Plant site preparation, and will take approximately three years. The combined offshore and onshore pipeline system is targeted to be ready to deliver rich gas by end of 2024, and the NGL Plant is targeted to be operational by mid-2025. The Project has a planned life cycle of at least 25 years.
The aspect of the project for which the oil company is responsible, that is to say, the installation of the offshore and onshore pipelines, is set to cost a whopping US$1.3B.

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