How can Guyana accelerate the monetization of its Natural Gas?

Apr 26, 2024 Letters

Dear Editor,

Proposal to President Irfaan Ali and President Chandrikapersad Santokhi.

Since the discoveries of the Oil and Gas resources Guyana tried to look for possibilities to reach a sustainable economic and social development of the country for the prosperity and the wellbeing of its people. This is in line with the 17 Sustainable Development Goals of the United Nations.

But the main problem, apart from other issues, is the funding for the projects and programmes for the development goals. How effective and efficient can Guyana manage its Oil and Gas Resources to get its fair share for fulfilling its needs according the SDG of the UN?

Let us take a look for the Natural Gas.

Confronting with the high energy rates (all the feedstock for the power generation is imported) the first thing is to try to replace the import by its own Natural Gas. Guyana has succeeded to realize its Gas-to-Energy Project after several extensive feasibility studies.

The GTE Project will be in operation during 2025. This project needs 50 million scfd natural gas for the power generation plant of 300 MW while the transport capacity of the pipeline is 130 million scfd.

So, the balance of 80 million scfd can be put available for a power generation of about 400 MW (proposed project) in the district Nickerie, in the Western part of Suriname. This energy can be used for the industrial development of both countries.

In the initial period, when there is no power consumer, the government of Suriname can purchase the energy through its wholly owned energy company EBS instead of using the energy generated by EBS. Energy from Natural Gas is cheaper than from HFO.

As industrialisation is starting to increase at the same time the energy decrease for EBS will take place.

This proposed project will accelerate the monetisation of the natural gas developments of Guyana and is in line with the following:

Formation Agreement for the Strategic Dialogue and Cooperation Platform signed on November 24, 2020 by the Government of the Republic of Suriname and the Government of the Cooperative Republic of Guyana. Cooperation under this Agreement shall include areas of common interest. One of the areas is Natural Resources including Mining and Oil and Gas.

Meanwhile Guyana has sent out Invitation for Request for Proposal for Design, Finance, Construction, and Operation of Required Gas Infrastructure to Support Upstream Developments. This project will be strictly financed and owned 100% by private sector. As part of this RFP process, the selected Applicant, if any, with the most optimism solution for the Project, will have exclusivity to negotiate with the GoG for its entitlement of the gas to ensure the viability of the Project and the overall value chain. (REF.: GOG/MNR/2024/GTE-01)

Next step

GoG and GoS to sign an MOU for cooperation for the 400 MW Power Project and for the supply of Natural Gas.
Two RFPs based on Design, Finance, Construction, and Operation for the pipeline and for the power generation plant will be sent out.

It is recommended that the MOU to be signed by both Presidents on the Suriname Energy Oil and Gas Summit on 4-7 June 2024.

Regards,

Drs. Johan Tjang-A-Sjin

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Drs. Johan Tjang-A-Sjin, possibilities, President Chandrikapersad Santokhi, President Irfaan Ali, sustainable

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