Exxon still testing equipment to stop flaring

Jul 15, 2022 News

– Minister Bharrat pleased with operations at Liza Unity

By Davina Bagot

Kaieteur News – Since the startup of oil production in 2019, ExxonMobil experienced technical issues with the flash gas compressor installed on the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel, and to date, tests are still being conducted to ensure that the faulty equipment is now ready to do its job.

ExxonMobil flaring at its Liza Destiny FPSO

Minister of Natural Resources, Vickram Bharrat on Monday told Kaieteur News that Exxon’s flash gas compressor has returned to Guyana and is being tested again. It must be noted that in the absence of this critical piece of the equipment, the oil company has been flaring the associated natural gas offshore at the Liza One operation.

Bharrat in providing the update was happy to report that the country’s second FPSO, the Liza Unity has not encountered any issues as it regards flaring, as commissioning of the operations went “well”. However, when it comes to the first FPSO, he is hopeful that the issue would be resolved soon.

According to the minister, “As it is now, Unity has not encountered any problems with regards to flaring. The commissioning has gone well. We are pleased with the commissioning of Unity. Destiny, as you are aware, there was an issue with the flash gas compressor. That was replaced last month and they are doing some testing on it so that, we are confident that should be resolved very soon. That is on the Destiny FPSO but there is no issue on Unity.”

In January, Kaieteur News reported that Exxon was still experiencing design issues with the gas compressor. Media and Communications Manager for ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), Janelle Persaud had disclosed that the installation of the new gas compressor for the Liza Destiny FPSO will no longer occur in January, as previously stated. Persaud said the upgraded equipment will now be installed by mid-year. Persaud said the third-stage flash gas compressor (FGC) currently on the Liza Destiny FPSO continues to operate steadily in the interim.

In a statement to the press, it was noted that the redesigned FGC was undergoing comprehensive testing in Germany, where EEPGL had determined it will require further enhancements before installation.

Persaud said, “We have adjusted the timeline for its delivery and installation in order to provide the highest assurance of reliable performance.”

Meanwhile, the EEPGL official said ExxonMobil Guyana and the vessel’s owner, SBM Offshore, are also progressing several alternate longer-term solutions which include new technology to bypass the second and third stage FGCs, as well as an entirely new centrifugal compressor package to replace the screw design of the current compressors.

Persaud also noted in a brief note to Kaieteur News that flare levels are being maintained below 15 million standard cubic feet of gas per day when the Flash Gas Compression system is offline and below 7 million standard cubic feet of gas when the FGC is online. In May, the Environmental Protection Agency (EPA) approved to renewal of the Liza One Permit, adding a mere US$5 to the penalty price for flaring. It has now moved to US$50.

Extensive research conducted by Kaieteur News shows that gas flaring contributes to climate change, which has serious implications for the human security and wellbeing globally. In fact, the Department of Mechanical Engineering at the University of Ibadan, Ibadan, Nigeria, outlined in one of its studies, that gas flaring is actually a major source of greenhouse gases, which accelerates global warming.
It was noted that flaring releases Carbon Dioxide and Methane, the two major greenhouse gases.

Of these two, Methane is actually more harmful than Carbon Dioxide. It is also more prevalent in flares that burn at lower efficiency. Of the greenhouse gases researched so far, Kaieteur News understands that the global warming potential of a kilogramme of Methane is estimated to be 21 times that of a kilogramme of Carbon Dioxide when the effects are considered. The University of Ibadan study also noted that flaring contributes to local and regional environmental problems, such as acid rain with attendant impact on agriculture, forests and other physical infrastructure. The acid rain results in environmental degradation, which includes soil and water contamination and roof erosion.

Furthermore, there have been over 250 identified toxins released from flaring including carcinogens such as benzopyrene, benzene, carbon disulphide (CS2), carbonyl sulphide (COS) and toluene; metals such as mercury, arsenic and chromium; sour gas with Hydrogen Sulfide (H2S) and Sulfur Dioxide (SO2); Nitrogen oxides (NOx); Carbon dioxide (CO2); and methane (CH4) which contributes to the greenhouse gases. The agency had collected over $930M in flaring fees since introducing the flaring fee arrangement.