West Dem. residents exposed to dangers in absence of gas leak management plan – Patterson

Aug 09, 2022 News

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…as ExxonMobil busy awarding contracts for Gas-to-Energy project

By Davina Bagot

Kaieteur News – The residents of West Demerara, Region Three remain exposed to danger, in the absence of a Gas Leak Management Plan (GLMP) for the US$1.3 billion Gas to Energy pipeline to be developed by American oil major, ExxonMobil.

This much was highlighted by the Shadow Oil and Gas Minister, David Patterson in an exclusive interview with Kaieteur News yesterday, as he stressed the point that the oil company has been busy awarding contracts for the project, while the people on the western end of the Demerara River are clueless as to what can happen, and how the company would respond, in the event of a gas leak, or worst yet, an explosion.

Patterson pointed to the fact that gas pipelines are likely to be damaged, as highlighted in the Environmental Impact Assessment (EIA) submitted by Esso Exploration and Production Guyana Limited (EEPGL), Exxon’s subsidiary that will be undertaking the project.

The EIA explains that while onshore pipeline integrity failures are rare, if a loss were to occur, the most likely causes would be due to a third party striking the line, or corrosion of the pipe.
A strike to the buried line can occur as a result of a third party excavating in close proximity to the pipeline without knowing the exact location of the pipeline and would present a source of ignition for the released gas, which could result in the immediate ignition of the gas, the EIA notes.

But if, “the release is not ignited immediately, a flammable gas cloud would be formed and this could ignite, causing either a flash fire or explosion. An explosion would only be likely to occur if the gas is released into a congested space. A congested space can be defined as any space within which there is an obstruction to the free movement of gas through the space. The most likely places where obstructions would be present near the onshore pipeline would be densely forested areas or thick undergrowth.”

It is in this regard that Patterson has flagged the urgent need of a GLMP. According to the former Minister of Public Infrastructure, “Exxon, being a worldwide international company, would be fully aware of the requirements that should be in place for such a project to be successfully executed. It is worrying that such a global company is proceeding apace without having undertaken all the required studies.”

Former Head of the EPA, Dr. Vincent Adams had made it clear that a gas leak is the most hazardous risk that is involved in such a project, hence a response plan to such an occurrence was crucial to be included in the EIA. “Remember what an EIA is; that’s the document that defines, it’s what I like to call the bible of any project. It defines all of the environmental risks and hazards. No other document does it in detail, so if a risk has not been identified and not only identified, it has to say in that EIA how you are gunna address that risk in terms of mitigative action or how you are gunna respond if something happens,” he shared.

Exxon has committed to develop and submit the document to the EPA before a year before the project commences, however, it has plunged right into the award of contracts for the venture, while being completely silent on this critical aspect of the venture.

This move clearly states the company’s priorities Patterson said, while adding that the government is equally responsible in not holding the company liable. He argued, “The excuse that the government has given them (Exxon) permission to proceed is not acceptable. They will be equally liable for any mishaps or corrupt practices as the Government of Guyana.”

Meanwhile, in squeezing the oil company, the former Minister reasoned, “There is a maxim “ignorance of the law is no excuse”, equally so, knowingly bringing a dangerous substance (gas) to shore without the requisite safeguards under the coverage of Government permission is no excuse.”

He was keen to point out that funds were allocated through the 2021 Budget to finance studies to further detail the works on the project, but to date, no further studies have been executed.

According to him, “As a developmental partner to Guyana, it is also the responsibility of Exxon to ensure all their projects, and expenditure goes towards the benefit of the country as a whole, in an open and transparent manner. The Wales Gas to Shore project does not meet that threshold.”

It was reported last week that while the country was celebrating Emancipation, the oil company awarded a contract to Technip FMC, a United-Kingdom based firm that provides expertise for subsea and surface projects. According to reports, the company received a “significant” contract to provide engineering, procurement, construction and installation of subsea risers and pipelines for the Wales Gas-to-Energy venture. Though a cost was not attached, it must be noted that a significant contract for Technip FMC is one within the range of $75 million and $250 million. The full contract award will not be included in inbound orders until the project receives a final investment decision and government approvals.

Prior to that, Exxon entered into an agreement with two other companies to aid in the laying of the 190 kilometre pipeline.  Subsea 7 and Van Oord were contracted to assist in the project management, engineering, and installation of the natural gas pipeline, with an associated shallow water portion and onshore approach making landfall to the west of the Demerara River, along the coast of Guyana.  Subsea 7, according to its website, specialises in subsea engineering, construction and services mainly for the offshore energy industry. The company is registered in Luxembourg with its headquarters in London. Meanwhile, Royal Van Oord is a Dutch maritime contracting company that specialises in dredging, land reclamation and constructing man-made islands.

EEPGL has revealed that a minimum of 50 million standard cubic feet of gas per day (mmscfd) will be transported through the pipeline by 2024 and that the pipeline would have a maximum capacity of 130 mmscfd.

 

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