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Exxon will know by year-end which project will fill capacity of gas pipeline
Kaieteur News – Head of ExxonMobil Guyana Limited, Alistair Routledge assured this week that his company has a keen interest in selecting an appropriate project that could help fill the pipeline for the US$1.7B gas-to-energy project.
ExxonMobil Guyana’s Head, Alistair Routledge
The current structure of the gas project entails the transportation of 50 million standard cubic feet of gas per day through a 12 inch diameter pipeline. That pipeline will have an offshore component that will take the natural gas from the Liza Phase One and Liza Phase Two projects in the Stabroek Block, through the onshore aspect of the pipeline which will connect to facilities at the Wales Development Site. Notably, Exxon is responsible for building the pipeline which has a capacity to take a maximum of 130 million standard cubic feet of gas per day.
Kaieteur News recently asked Routledge to state what project in the Stabroek Block would be tapped to bring in the additional 80 million cubic feet of gas to utilise the full capacity of the pipeline. Routledge said, “I can assure you that we are as motivated as the government to fill the pipeline. We are a great believer that if you invest in an asset, you want to use it as fully as you can and there is no difference here with the gas-to-energy pipeline.”
He added, “But we are working with government and looking at the developed or developing resources.” Routledge said the Yellowtail, Uaru and even the Whiptail project that is awaiting approval, form part of the evaluation process.
Further, Routledge explained that discussions entail ascertaining how much gas is needed to ensure the company maximises the recovery of the liquids “and then see if we can free up some other gas molecules to flow into the pipeline.”
He said, “I am sure by later this year we will have some better answers on what project will be used to fill the pipeline…” Routledge said what needs to happen in tandem with this increase is ensuring that there are the requisite facilities to take the additional gas, along with the right markets. “None of us wants to invest more money in bringing the gas to shore when there is no off take onshore. So it has to be an ongoing collaborative discussion,” said the Country Manager.
In providing an update on the progress of the project, Routledge reminded that Exxon is responsible for building out the pipeline network which is expected to cost about US$1B. He noted that his company remains on track to complete the works it is responsible for and deliver gas to Guyana by year-end. Routledge said the onshore portion of the pipeline is 40 percent complete while the offshore portion is 55 percent finished.
“…So the work ahead of us this year is to install the risers on the FPSOs (floating, production, storage and offloading vessels), lay the pipeline in the deepwater, complete the ultra shallow (water portion) and then connect to onshore,” the Country Manager said.
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