Exxon commences offshore pipeline laying for Gas-to-Energy project

Jun 14, 2023 Court Stories, ExxonMobil, Features / Columnists, News, Oil & Gas

…as Court case challenging legality of Permit ongoing

Kaieteur News – Esso Exploration and Production Guyana Limited (EEPGL) has commenced pipeline laying activities in the country’s Exclusive Economic Zone for the highly touted Gas-to-Energy (GTE) project.

This is according to a Maritime Administration (MARAD) notice, issued by the Harbour Master (ag) on June 8, 2023.

The notice published in this newspaper explained that ‘Stingray’ a shallow water pipeline laying barge will be engaged in pipe laying activities, which will conclude on November 1, 2023.

Kaieteur News understands that the offshore works for the project commenced on June 1, 2023.

MARAD said, “The pipe laying area stretches from the coast to approximately 39 nautical miles (72.2 kilometres offshore of Guyana and covers an area of 65 square nautical miles (225 square kilometres).”

Meanwhile, the vessels that will be involved in this aspect of the project includes: VMI Love, Coastal, Challenger, Lead 1, Coastal Vanguard, Kamarina, Cota La Luz, Lead Marlin, Sayan Polaris, Tamuata, Lead 2, Costal Enterprise, Morag M, Patriot, Leadership and Ella F.

The Maritime Department has warned mariners to operate with caution when in the vicinity of the project area and moreover, to stay clear of these vessels.

A source at ExxonMobil Guyana confirmed that the notice relates to the near shore work being conducted by Van Oord, a contractor hired by the operator of the Stabroek Block to conduct the works.

But while Exxon steams ahead with this project, with the blessings of the Guyana government, it is presently before the Court for its 12-inch pipeline that will be used to transport natural gas to the Wales Development site, West Bank Demerara.

Two citizens, Elizabeth Deane-Hughes and Vanda Radzik filed an application on March 27, 2023 in the High Court challenging the permit issued by the Environmental Protection Agency (EPA) to EEPGL for the pipeline.

ExxonMobil Guyana had applied to join the matter in which the EPA was the listed respondent.

The two citizens are being represented by their lawyers, Melinda Janki, Abiola Wong-Inniss and Joel Ross, who are seeking several reliefs inter alia a declaration the project is contrary to the environmental laws of Guyana.

The citizens are seeking an Order of Certiorari to quash the decision made by the 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 applicants outlined that ExxonMobil Guyana in its application to the regulator, dated June 24, 2021 includes details of the project site, the proposed route of the pipeline and the areas to be used and affected by the project, which includes residential properties, commercial properties and state-owned properties. Be that as it may, the application did not include or provide any proof of ownership, a lease or other agreement with the land owners of the said area.

Notwithstanding, the EPA granted EEPGL a Permit to undertake the project on November 25, 2022. Subsequently, the Minister of Public Works, Juan Edghill in January 2023 passed various orders to acquire lands for the purpose of the project, pursuant to the Acquisition of Lands for Public Purposes Act, Chapter 62:05.

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.

In their application to the High Court, Radzik and Deane-Hughes stated that Pursuant to Regulation 17 (2)(c)(iii) of the Environmental Protection (Authorisation) Regulations, an application for an environmental authorization must contain “proof that the applicant either owns the facility or has a lease or other agreement with the landowner or occupier to enable the applicant to conduct the activity without the consent of the landowner or occupier.”

It was reported that the matter is before Justice Priya Sewnarine Beharry at the Georgetown High Court.

The pipeline is a critical component of the GTE project that is intended to reduce the cost of electricity by 50 percent. The infrastructure is being funded by the oil company and will be repaid by Guyana via annual payments of US$55 million for 20 years. Separately, the GoG is pursuing a Natural Gas Liquids (NGL) facility to treat and separate the gas, along with a 300-megawatt power plant to generate electricity to power the national grid. Government intends for the project to startup by the end of next year.