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Gas-to-Energy project…Guyana will be left with over 3,000 barrels of liquids to export each day
…no market secured yet
Kaieteur News – By 2025, the Government of Guyana (GoG) expects its US$282 million Natural Gas Liquids (NGL) plant to be on stream. The startup of this facility will provide the country with some 4,100 barrels of by-products daily- such as cooking gas and fuel for cigarettes- among others.
Head of the GTE Project, Winston Brassington
Guyana however utilises approximately 700 barrels per day of these products, which means the country will have to seek markets for 3,400 barrels of byproducts each day or 1,241,000 barrels on an annual basis.
These details were shared when Head of the Gas-to-Energy (GTE) Project, Winston Brassington offered an update during the just concluded International Energy Conference and Expo. Brassington told delegates that Guyana will be getting some 50 million cubic feet of gas per day (MMCFD) as assured by its contractor. This will amount to 63 million barrels of liquids per annum, he said. According to Brassington, “This is equivalent to about 4,100 barrels of liquids per day- so the C3, the C4, the C5 plus, the propane, butane and pentane.”
He was keen to note, “right now the country only utilizes about 700 barrels a day, so we will have quite a lot to export. In addition to that more importantly, we will receive 311 megawatts using lean gas cause the rich gas is separated into the liquids and the lean gas, and that will deliver to us, over 2600 gigawatt hours per annum.”
In the meantime, the Project Head also made it clear that the 50 MMCFD is only 40 percent of the pipeline’s capability, as the infrastructure will be able to transport over 120 MMCFD.
With the NGL facility set to come on stream by 2025, government is yet to secure markets for the excess gas products that will be available. So far, the government has not indicated whether there is interest in these natural gas products by potential buyers. The sale of these liquids however can be a significant source of revenue generation for the country. At a previous press conference, Vice President Bharrat Jagdeo said “We anticipate maybe $70 to 100 million a year from selling it at current prices.”
Importantly, the VP assured that this revenue will be collected by the state and be put towards the development of the country.
American oil major ExxonMobil had applied to the Environmental Protection Agency (EPA) for a Permit to construct the facility. Approval was granted on November 25, 2022 but the administration has since decided to construct the facility on its own, along with a 300 megawatts power plant. A third aspect of the project will be the construction of a 12-inch pipeline to bring the gas to shore from the Liza fields in the Stabroek Block.
On December 13, government awarded a US$759M contract to CH4-Lindsayca to construct the NGL facility and power plant. Exxon on the other hand will be spending US$1 billion on the pipeline according to Brassington.
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