All key financial data on gas-to-energy project not in public eyes

Jan 12, 2023 News

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Kaieteur News – The way has been cleared for construction to commence on the US$2 billion Gas-to-Energy (GTE) project even as Guyanese remain in the dark regarding key aspects of the controversial initiative, in clear violation of the nation’s laws.

Each application made to the Environmental Protection Agency (EPA) seeking Environmental Authorization or a Permit to start up a project must be shared with the public.

At least this is according to the Constitution, specifically the Environmental Protection Act.

Part VII of the Law, that speaks directly to ‘Investigations, Prosecutions, Civil Proceedings’ makes it pellucid at Section 36 (1) that “It shall be the duty of the Agency to maintain, open to the public, registers containing particulars of- (a) each application for an environmental authorization made to the agency, including the name and address of the person making the application, and the location at which any activity is proposed to be or is undertaken pursuant to the environmental authorization.”

There are an additional nine particulars that the EPA must publicise, including each environmental authorization granted, its terms and conditions; each cancellation, revocation, variation or transfer of an environmental authorization and each incident or occurrence causing or threatening serious or material environmental harm that comes to the agency.

Section 36(4) adds, “The register must be kept available for inspection by any member of the public during ordinary office hours at the principal office of the Agency.”

At Part III of the Act that deals with ‘Power to Grant Environmental Authorization’ the legislation highlights the requirements to apply for authorization. Section 17(2) goes on to explain that an application for environmental authorization shall contain the company or corporate name; proof that the applicant either owns the facility or has a lease or other agreement with the land owner- map showing the location of any existing or proposed intake and discharge structures and location of discharge; a detailed description of the activity generating the discharge and several others.

Notably, while these facts should be accessible by members of the public, the applications made- that would contain these details- by both Government and its partner, ExxonMobil for the massive gas project was never published by the regulator.

But, in addition to these elements of the project, all agreements made to date between the two parties have similarly been blanketed or kept secret.

Just yesterday it was reported that former Health Minister and Opposition Member of Parliament, Volda Lawrence has tabled several questions in the National Assembly to ascertain the financing arrangements in place for the multi-million dollar gas-to-energy project.

In the questions posed to Prime Minister, Brigadier (retired) Mark Phillips, Lawrence asked for the nation to be told the cost of the gas-to-shore pipeline project, and from where or whom the government is sourcing the financing.

Lawrence also asked for details on the associated terms and conditions among others.

This newspaper reported last December that Opposition Member of Parliament (MP), David Patterson had asked Natural Resources Minister, Vickram Bharrat in the National Assembly whether any agreements were signed with Esso Exploration and Production Guyana Limited (EEPGL) in connection with the Wales project and if yes, for the Minister to supply the House with a copy of the said agreement.

Bharrat in his response to Patterson said, “There are other agreements on supply, buyer’s agreement, field development, licensing conditions, onshore works, and land matters that are currently being drafted. The respective agreements and policy documents will be presented to this Honourable House when they have been agreed upon and executed. All agreements are being done in a timely manner to meet the Final Investment Decision which will allow for the project to be completed by our committed deadline of December 2024.”

Since the inception of this US$2B project, the entire agreement has been shrouded in secrecy. When the Heads of Agreement was signed, the press was invited but was not allowed to ask questions. There has been no press conference on the mega project too, even though there is no updated feasibility study proving the viability of the project.

Government said the venture will lower electricity costs by 50 percent, however independent analysts have said this may not be possible due to the increased price tag of the project.

The Wales GTE project entails three components inclusive of the pipeline, a Natural Gas Liquids (NGL) facility to treat and separate the gas and a power plant to generate 300 megawatts of electricity. Exxon’s pipeline so far is expected to cost US$1.3 billion, while the other two aspects are now pegged at US$759M.

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• energy, Exxon, feasibility, gas, Government

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