First shipment of onshore pipeline for Gas-to-Energy project expected in Guyana soon

May 16, 2023 News

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Kaieteur News – As American oil major, ExxonMobil races to meet its 2024 deadline for completion of the Gas-to-Energy pipeline- a component of the Government of Guyana’s (GoG’s) Gas-to-Energy (GTE) project- the first shipment of onshore pipes, that will be used to transport the natural gas is expected to arrive in Guyana soon for installation.

Commercial Manager at Inland and Offshore Contractors Limited, Sherena Khan in a post published five days ago said, “Tonight over 50 persons gathered from various stakeholder groups to witness/ execute this loading. Being present in the midst of these activities reinforced the value of stakeholder relationships.”

The stakeholders she was referring to are those involved in project including, ExxonMobil Guyana, Van Oord, Guyana Shore Base Inc. (GYSBI) and GAICO.

Khan described her experience as “witnessing some history in the making for Guyana” as the first loading of onshore pipe for the project was conducted. It is unclear where the infrastructure was being imported from.

ExxonMobil is pushing ahead with the development of the US$1.3 billion, 12-inch diameter pipeline that is expected to convey gas from the Liza One and Liza Two fields in the Stabroek Block, while a legal challenge is still pending outcome in the local High Court.

On March 27, 2023, two citizens, Elizabeth Deane-Hughes and Vanda Radzik, through their Lawyers, Melinda Janki, Abiola Wong-Inniss and Joel Ross moved to Court seeking an Order of Certiorari to quash the decision made by the Environmental Protection Agency (EPA) to award an Environmental Permit to EEPGL – ExxonMobil Guyana to undertake the GTE project activities, on the grounds inter alia that the decision was in breach of the provisions of the Environmental Protection Act (Cap. 20:05), and more particularly, the Environmental Protection (Authorisation) Regulations.

The Permit by the regulator, authorizing the pipeline aspect of the GTE project was granted on November 25, 2022.

The citizens argue that the decision to grant the Permit to Exxon was “unauthorised and contrary to law, in excess of jurisdiction, failure to satisfy or observe conditions or procedures required by law, unreasonable, irregular or improper exercise of discretion, abuse of power, conflict with the policy of the Act, error of law (and) breach of/ omission to perform a duty.”

The applicants are therefore seeking a declaration that the respondent acted in breach of the Environmental Protection (Authorisation) Regulations; a declaration that the Permit is null, void and of no legal effect with costs and such further order the Court considers just.

Only yesterday Kaieteur News reported that in the matter against the EPA, Exxon and Guyana’s Attorney General, Anil Nandlall, SC, applied to join the case. The decision as to whether the two parties will be made joinders to the matter is set to take place on 12 June 2023.  Thereafter, the substantive matter will be set for 16 June 2023 for the submission of written arguments.

In July last year, EEPGL awarded the contract to lay the US$1.3 billion pipeline to Subsea 7 and Van Oord, two international companies. The scope covers the project management, engineering, and installation of approximately 190 kilometres of pipeline, with an associated shallow water portion and onshore approach making landfall to the west of the Demerara River, along the coast of Guyana.

EEPGL has been reported to say 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. According to Offshore Energy, Craig Broussard, Vice President for Subsea 7 US, said, “We are honoured to have been selected for Guyana Gas to Energy. This is an important project to support the Guyanese people and we look forward to continuing our relationship with EEPGL in one of the most prolific and exciting development basins in the world.”

Hans van Gaalen, Commercial Director for Van Oord, adds, “Van Oord is honoured to have been selected for the Guyana Gas to Energy project in cooperation with Subsea 7. Developing the coastal infrastructure for the project will allow our Subsea 7 and Van Oord consortium to positively contribute to the development of Guyana’s electricity supply which in turn will reduce Guyana’s dependence on imported fuels.”

 

 

 

 

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• ExxonMobil, gas, GTE, pipeline, transport

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