Exxon says too early to discuss compensation for mishaps on Gas-to-Energy pipeline

Mar 24, 2024 ExxonMobil, News, Oil & Gas

ExxonMobil’s GTE Project Manager, Friedrich Krispin

Kaieteur News – As the Gas-to-Energy (GTE) pipeline, being constructed by ExxonMobil Guyana Limited (EMGL) moves closer to completion, key issues regarding the controversial venture is still to be addressed.

The most hazardous risk associated with the project is a leaking pipeline that can threaten health and even result in an explosion. The pipeline passes through a number of residential communities, farmlands, waterways and roadways in proximity to public facilities such as schools and businesses; however the question of compensation in the event of a disaster is still to be addressed.

Exxon hosted an Open House discussion on Tuesday at Aracari Resort, Versailles, West Bank Demerara where the public had an opportunity to ask questions and share their concerns on the project. A number of citizens seized the opportunity to engage Exxon and the company’s subcontractors, hired to complete the offshore and onshore structures.

This newspaper caught up with the GTE Project Manager, Friedrich Krispin who provided an update on the construction of the pipeline. He was also asked how the company would handle compensation for residents affected by an explosion or any unfortunate incident that occurs during the operation of the pipeline. Krispin said that while these are matters discussed by the oil company, he was unable to address the issue.

He explained, “I can tell you that by principle, the most important thing that we can do is to build this pipeline to the highest standards and operate it to the highest standard so there will never be a leak of any kind. Whether we sit down and talk about different scenarios, yes we do, we’re contemplating. Can I tell you what exactly we’re gonna do with compensation, I don’t think I can tell you that today.”

EMGL had submitted an Environmental Impact Assessment (EIA) to the Environmental Protection Agency (EPA), highlighting the risks associated with the project, as well as measures to mitigate those potential scenarios.

It was stated that gas leaks, and worse yet explosions are likely to occur as a result of corrosion, objects striking the pipeline, and a buildup of stress in the pipe wall, causing buckling. Even though this hazard was identified, Exxon’s Consultant did not see it fit to also attach a detailed response plan, accompanied by the various scenarios in which such an event can occur.

The operator is now in the process of completing that study.

In the meantime, there is no word on insurance or liability coverage for the pipeline aspect of the GTE project.

This is particularly concerning, as citizens are now before the Court fighting for ExxonMobil to provide full protection for the state and its neighbours in the event of an oil spill that occurs at the Stabroek Block, where over 600,000 barrels of oil per day is now being produced.

The GTE project will utilize gas from the Liza One and Liza Two fields in the Stabroek Block. Exxon is responsible for the pipeline that will be used to transport the gas to the Wales development site to be utilized for power generation and the sale of remaining liquids.

Government is building a Natural Gas Liquids (NGL) facility to treat and separate the gas in addition to a 300 megawatt power plant.

ExxonMobil told this newspaper on Tuesday that the pipeline is already 50% complete and will be handed over to government by year end, in accordance with its initial timeline.

The pipeline will transport up to approximately 50 million standard cubic feet per day (MMscfd) of dry gas to the NGL Plant, according to the EIA submitted by Exxon.