Latest update November 23rd, 2024 1:00 AM
Latest News
ExxonMobil to determine fate of Guyana’s Gas Master Plan – VP Jagdeo
Kaieteur News – Vice President, Dr. Bharrat Jagdeo recently disclosed that Guyana’s gas reserve currently totals 16 trillion cubic feet (Tcf). In light of this, he believes there is merit to the advice offered by industry experts that the country would be wise to develop a gas master plan.
Vice President, Dr. Bharrat Jagdeo
The government’s oil boss was keen to note, however, that such a plan hinges on how much of the gas reserve ExxonMobil Guyana can make available for use.
During a recent engagement, the Vice President said, “We are working on a draft master plan for the country and a lot hinges on getting Exxon to make more gas available to monetize more of its 16 trillion cubic feet of reserve. So that is the first objective of the government.”
The economist and former Head of State continued, “…Now as you know, Exxon now re-injects most of this gas back into the reservoir and they are saying it is important for reservioir quality and for them to do that in all the developments then we don’t have much gas to utilize so we are working with them to get some studies done to see how we can liberate more of the gas.”
The Vice President indicated that the government is of the firm conviction that the gas resource can be as lucrative as the oil component of Exxon’s operations. He stressed however that a lot hinges on the availability of the gas and not being carried away by the size of the reserve.”
In the meantime, Jagdeo said the government intends to advance its gas-to-power project which will utilize a 12 inch pipeline and bring in at maximum, 130 million cubic feet of gas per day. He said a commitment has been received from Exxon for 50 million standard cubic feet per day but work is ongoing to increase this to 80 million cubic feet.
Dr. Jagdeo said, “We have to secure the supplies to bring in the 80 million remaining and we believe we can do that…at this stage we will have to get a significant part of that gas to generate 250 to 300 megawatt of power.”
As for the excess gas that will be available after the government utilizes a portion for power generation, Jagdeo said the administration is in receipt of 15 to 20 proposals on what would be the best course of action. Even with their being no feasibility study and a gas master plan in place, he assured that Guyana will not be left paying for gas it cannot absorb or use.
Kaieteur News has reported over the years, the advice of several experts and industry analysts, all of whom urged the new oil producing State to get a gas master plan in place before expending billions of dollars in a trial and error exercise.
Energy Consultant and Co-Director at Americans Market Intelligence (AMI), Arthur Deakin, is one such person who had advised Guyana in this regard. In one of his appearances on Kaieteur Radio’s Programme– Guyana’s Oil and You, Deakin had explained that as more discoveries are made in the Stabroek Block, the country will unlock more gas.
To ensure the country maximizes the value of both resources, he urged the authorities to put a plan in place. Deakin had also warned of the debilitating effects of being left with surplus gas with no plan in place for its use.
Deakin had also encouraged authorities to conduct an independent assessment of its resources.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Let us not be silent witnesses!
…Peeping Tom kaieteur News- Ray Daggers walked from Corriverton to Charity. It was a journey so epic it might have... more
Rising Gun Crimes in the Caribbean: Urgent Action required by all
By Sir Ronald Sanders Kaieteur News – There is an alarming surge in gun-related violence, particularly among younger... more
Weekend Cartoon
