Guyana investing in Lethem roads and Corentyne Bridge to sell gas – Pres. Ali tells Oil conference

Feb 20, 2024 News

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Kaieteur News – President Irfaan Ali, during his address at the opening of the 2024 Guyana Energy Conference and Supply Chain Expo, unveiled his administration’s ambitious plan to bolster its infrastructure to cater to the export of the country’s excess natural gas products.

Reminding attendees that the country’s oil story is known, President Ali focused his address on the government’s gas strategy. He told the gathering of attendees at the Guyana Marriott Hotel that Guyana’s energy potential can only be translated into value if there is a market within the region.

He said, “And that is what we are focusing on… in the logistics build up, how do we build out this eco-system to support the energy development that would lead the other important development in the country.”

Ali highlighted the strategic investments in infrastructure and logistics to tap into neighboring markets, particularly in the Caribbean Community (CARICOM), South America, and the Dominican Republic (DR).

He pointed to the Gas-to-Energy project, which entails transporting natural gas from ExxonMobil’s offshore Stabroek Block operations to a processing facility at Wales, West Bank Demerara, alongside a 300-megawatt power plant and a Natural Gas Liquids (NGL) facility.

The President cited the GTE project’s in its first phase will be producing 4,000 barrels of propane and butane (cooking gas) per day, with the gas pipeline only operating at 40% of its capacity. As such, he said there will be a significant amount of gas for export.

“Now, what does this mean? What does this 4,000 barrels translate to in transport, logistics and in building out an ecosystem.  Our local consumption now is 800 barrels per day so we will be producing at least 4,000 barrels and that is in phase one 40% of the pipeline (capacity). Our local consumption is 800 barrels immediately, we have 3,200 barrels for available for export,” Ali told the gathering.

He said too, “This has to be moved, has to be transported and here is where the bridge link to Suriname across the Corentyne River is key and critical that is why we are pushing to advance the building of this bridge so that market in Suriname becomes available even in the first phase of the excess.”

To also facilitate this, Ali pointed to the ongoing construction of a 122-kilometer road to northern Brazil.

“All of that investment we are already making so that that market becomes immediately available,” he added.

The President noted that based on the interest, a second power plant will be needed. President Ali outlined the economic benefits of infrastructure investments, envisioning Guyana as a major player in fulfilling regional energy demands, particularly within CARICOM and the DR. He highlighted the potential for job creation, industrial development, and revenue generation stemming from enhanced connectivity and access to regional markets.

Ali said that at full capacity, “We are looking at 10,000 barrels per day that is propane and butane…so we are mobbing to 10,000 barrels per day. Now what does this mean to us, now even with a growth in our demand we will have 9000 barrels per day ready for export.”

To this end, he added that this is why the DR and CARICOM market demands are important.

He affirmed, “So this is the link between investment, when people ask why build roads, why build bridges, this is the economic link that it create…if we don’t have it we will sit on 9000 barrels of propane and it can’t hatch so you know some of these experts sometimes… wonder gazingly academically as to why you invest in roads and bridges this is the critical link to the opportunities that open up for the country.”

Moreover, Ali unveiled that the new deepwater port could be constructed in New Amsterdam, Region Six, which can be a pivotal hub for trade and transport, particularly with neighboring Brazil.

He said with improved road infrastructure, it will significantly reduce travel time from northern Brazil into Lethem to New Amsterdam.

In addition to energy initiatives, Ali revealed plans for bauxite development and the establishment of a gold refinery.

“I ask all the gas value chain participants today and, in the future, to work closely together with a common objective of developing Guyana’s gas now to ensure the maximum value from our gas resources to ensure that future development and prosperity of all Guyanese and the reason for that is in relation to the master plan for gas,” President Ali said.

 

 

 

 

 

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• Conference, energy, gas, Irfaan Ali, President

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