Govt. tells High Court scrapping Gas-to-Energy Permit would jeopardize the interest of Guyana

Jun 17, 2023 Court Stories, ExxonMobil, Features / Columnists, News, Oil & Gas

Kaieteur News – The Government of Guyana (GoG) has joined Esso Exploration Production Guyana Limited (EEPGL) and the Environmental Protection Agency (EPA) in defending a Permit granted to the oil company for the pipeline aspect of the Gas-to-Energy (GTE) project.

The pipeline is a critical component of the GTE project that is intended to reduce the cost of electricity by 50 percent. Separately, the government 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.

In its application to the High Court, requesting to join the matter which was filed on March 27, 2023 by two citizens, the Attorney General, Anil Nandlall, on behalf of the State, reasoned that quashing the Permit could jeopardize the country’s interests.

Attorney General, Anil Nandlall, SC

The applicants, Vanda Radzik and Elizabeth Hughes have asked the Court to issue an Order of Certiorari to quash the decision made by the EPA to grant the Permit 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. They argue that the Permit was granted by the EPA without proof that the developer owns the land through which the pipeline passes.

The AG in his Application told the Court that the reliefs sought by the applicants to quash the Permit will directly impact the GOG in its capacity as a party to several contracts awarded under the project. Further, he contended that the government “ought not to be deprived of its rights and interests pursuant to the several contracts already entered into or of its rights accruing therefrom without due process of law”.

He contended that if judgement is granted in favour of the Applicants and the GTE project is stymied or halted “the interest of the State will be placed in jeopardy and the public interest at large stands to be severely affected”.

The AG told the High Court that the GoG would be forced to breach contracts already entered into for the construction of the power plant which could attract litigation. According to him, “The public interest and the State’s fiscal interests would be adversely affected” while the State’s development trajectory to reduce the price of electricity and the realization of a lower cost of living for Guyanese would be disrupted.

The AG further contended that the issue in contention that is the issuance of the land use permit by the EPA is inextricably linked to the acquisition of land by the State for the purposes of the project and creates a nexus between the GOG and the EPA.

The Permit in question was issued by the EPA to EEPGL for the pipeline on November 25, 2022. Radzik and Hughes have told the High Court 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.”

The matter is before Justice Priya Sewnarine Beharry.

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