Berbice to get oil and gas support base in late-2023

Nov 30, 2022 News

Kaieteur News – In support of the government’s efforts to accommodate increased vessel activity in Guyana, in-river construction works have been accelerated for the Berbice Deepwater Port. In fact, construction has commenced for a 50 x 12 metre access trestle from the port’s quayside yard westward into the Berbice river. This latest development was revealed by CGX Energy Inc. this week. The Canadian oil company with deep Guyanese roots is pursuing the port through its subsidiary, Grand Canal.

CGX said construction of the wharf, perpendicular to the trestle, will follow after the necessary dredging has been completed. It said too that the cargo terminal aspects of the deepwater port are targeted to commence in mid 2023 and operation of oil and gas support base to follow in late-2023, subject to construction schedules and supply chains.

Works being executed for the deepwater port

In collaboration with the Government of Guyana, CGX said it has shifted the immediate focus of the port to service expected demand for aggregates and building materials. It was keen to note that Government’s infrastructure development in Berbice has increased the need for materials to be imported into the region from elsewhere in the country and offshore, hence its port would be critical in reducing costs.

With exploration activity progressing in Suriname coupled with the ongoing exploration and production activities on the Stabroek Block offshore Guyana, , the demand for ports servicing these operations have grown almost exponentially.

Currently, more than 75% of the port business servicing offshore oil and gas operations in Guyana and Suriname are provided by Trinidadian ports. However there are cost, fuel and carbon footprint concerns for companies operating in Guyana and Suriname, as the sailing time from Trinidad ports to the fields offshore Guyana and Suriname require approximately 48 hours of sailing one way, as opposed to between 12 and 14 hours from the Berbice river location for the CGX Port.

This means that significantly more fuel is consumed for services from Trinidad based ports, leading to increased carbon emissions and escalation of costs related to fuel consumption, equipment rental, wear and tear and complicated logistics. Importantly, this presents an opportunity not only for CGX, but also for Guyanese seeking to capitalize on the emerging jobs in the oil and gas industry.

For Berbice, CGX has said that the port would be a game changer, and one of the more elegant solutions to the acute employment crisis created when the sugar estates were closed. Even as the sugar estates are in the process of being re-configured, unemployment in the Ancient County is still very high. Given that CGX has indicated that the port will also service the agricultural sector, it is expected that the port will also boost the competitiveness of sugar and rice grown in Regions Five and Six, as these commodities incur approximately 20% additional in costs to be transported to Port Georgetown for shipping.

This, in turn, should see an upswing in the number of Berbicians engaged in agriculture and agro-processing. With the expected increase in personnel servicing the offshore operations coming through the port, hospitality services and other businesses in New Amsterdam, which have been depressed for some time, are expected to see a significant boost in demand.

A few months ago, officials attached to Suriname’s national oil company, Staatsolie, highlighted the need for a deepwater port facility to service both countries’ offshore exploration and production activities. Given the position of CGX’s facility, it would be well placed to offer services to companies in the oil and gas sector from both countries.

CGX officials have also indicated in the past that the company was very excited about the potential increase in commodity goods coming through Guyana to the Port from Brazil, and also Suriname, as linkages to those countries being worked on are realized in the next few years. This includes the proposed bridge over the Corentyne River, and the proposed road to the State of Roraima in Brazil.

With the CGX Grand Canal Industrial Estates Berbice Deep Water Port back on track, Berbicians are set to take advantage of what is likely to place Berbice at the focal point of a Guyana-Suriname Energy and Commerce Corridor.

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