Guyana paid Ex-TT Energy Minister US$20K to prepare ‘aimless roadmap’ for gas monetization

Nov 10, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – Former Trinidad & Tobago (T&T) Energy Minister, Kevin Ramnarine, was paid some US$20,000 to prepare the widely discredited Guyana’s draft National Gas Monetization Strategy.

In 2021, T&T’s Energy Minister, Stuart Young, accused his predecessor, Kevin Ramnarine, of jeopardizing the country’s gas industry with a questionable deal. However, Ramnarine had defended the project, a US$900M petrochemical complex with Japanese firms, citing job creation and future positive cash flow. Young had criticised the lopsided provisions, debt issues, and preferential gas reserve policies.

Guyana is actively pursuing the use of natural gas in the Liza One and Liza Two fields for the Gas-to-Energy (GTE) project. ExxonMobil Guyana will fund a 12-inch pipeline for transporting the resource to Wales, where a Natural Gas Liquids (NGL) plant will treat and separate the gas for use in the power plant.

Former Trinidad & Tobago Energy Minister, Kevin Ramnarine

On Monday, October 30, the Government of Guyana (GoG) through the Ministry of Natural Resources (MNR) unveiled the draft strategy for public consultation. The ministry had stated that the gas strategy is part of a pivotal roadmap for managing the nation’s significant gas resources and that it also serves as a vital tool for Guyana to make informed decisions regarding the utilisation of its gas resources.

However, from an analysis of the document, it is evident that the strategy leaves much to be desired in terms of concrete, achievable steps for gas monetization. In fact, during a recent press conference, Vice President (VP), Bharrat Jagdeo, who previously expressed enthusiasm about the strategy, conceded that there are several known issues with the 43-page strategy before labeling the document as a “discussion paper.”

This publication understands that Ramnarine is responsible for the draft strategy, collective feedback as well as incorporating it into the final document. Kaieteur News had highlighted that since the start of Guyana’s oil industry, Ramnarine has been advising on Guyana’s Local Content initiatives as well as its imminent Gas-to-Energy Project said to cost US$2B. He was also part of the nation’s Local Content Panel, which was commissioned in 2020 by President, Irfaan Ali.

SUB-STANDARD STRATEGY

As citizens analyse the document Ramnarine prepared for the two-week period, it is essential to remember that ongoing exploration and appraisal activities are still underway to determine the full extent of Guyana’s gas reserves. This uncertainty adds an extra layer of complexity to the monetization strategy.

The draft gas strategy extensively discusses the various options available for the utilisation of natural gas, but falls short of providing a clear and detailed roadmap for Guyana to transform these options into reality. This discrepancy raises questions about the feasibility and practicability of the government’s approach.

The draft strategy discusses Methanol production, highlighting its significance as a global commodity chemical, especially in China. Methanol’s growth in the fuel sector and applications in various products are noted. However, the document lacks a comprehensive strategy for Guyana’s natural gas resources for Methanol production.

Vice President (VP) Bharrat Jagdeo.

Liquefied Natural Gas (LNG) is overviewed, emphasizing its complexity and reliance on long-term contracts. The strategy highlights the global growth in LNG production, but fails to provide a roadmap for Guyana’s entry into the LNG market. Notably, it cautioned regarding reliance on associated gas for LNG production, citing risks compared to non-associated gas reservoirs.

The document explores Ammonia/Urea production as a natural gas monetization route for global fertilizer markets. Demand, price fluctuations, and potential export constraints are discussed, but a clear plan for Guyana’s ammonia and urea production is lacking.

Also, Hydrogen’s role in climate change is mentioned, including green and blue hydrogen applications. However, the strategy lacks specific steps for Guyana to pursue this route, mentioning the need for renewable energy sources and Carbon Capture and Storage technology.

To access the Guyana Gas Monetisation Strategy and participate in the public consultation, please visit the ministry’s official website at https://petroleum.gov.gy/. The deadline for the public consultation is November 14, 2023.