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Guyana exploring exportation of electricity to monetise resources – President Ali says
Kaieteur News – The Government of Guyana has contracted a U.S. firm, Fulcrum LNG to help monetize the country’s gas resources. A number of options are presently on the table for consideration and are pending a full technical and financial analysis, including the export of electricity.
President Irfaan Ali addressing reporters during his press conference
This was revealed by President Irfaan Ali on Thursday during a press conference at State House, Georgetown.
He explained, “We recently concluded the expression of interest for a major gas project outside of the Wales development (Gas-to-Energy project). We had a company identified, that company with the Government of Guyana and Exxon and its partners will now have to have discussions and we will have to together arrive at a model and a plan as to how we will advance this major gas development in our country.”
In January, the government invited proposals seeking private sector pitches for the design, financing, construction, and operation of gas infrastructure to support current and future upstream developments in Guyana.
The Head of State was keen to note that the government has since assembled a technical team to participate in the discussions and draft a model for the utilization of the gas resources. President Ali anticipates a Heads of Agreement in this regard will be signed by next year.
President Ali said, “What we want is the monetization of the gas as fast as possible to add an additional revenue stream and it’s not only gas, it’s the condensate that comes with it. For a matter of fact that has tremendous opportunity and potential for us but we can’t know that, we can’t know the degree of opportunity until the full analysis, technical (and) financial, is completed for us to know what we have.”
To this end, he revealed that a number of possibilities are being examined, including the export of energy through the development of an energy corridor to Brazil and Suriname. In addition to that, he cited the marketing of by-products from the natural gas.
Ali also hinted at the possibility of a second power plant to position the country as an exporter of electricity.
“It also speaks about the development of a shore base facility, additional power plants that could be used for export of not only the gas, but power directly, so there are a number of opportunities that we think can be generated from this gas coming to shore or being processed but those are all things that will be examined in the conversation and then a viable option, the most competitive, cost effective, profitable option will be presented,” the Head of State explained.
Presently, the GoG is pursuing a US$2B Gas-to-Energy (GTE) project. This is the country’s first natural gas project. It is expected to generate 300 megawatts of power and an additional 3,400 barrels of by-products daily.
Project Head, Winston Brassington previously said the startup of this facility will provide the country with some 4,100 barrels of by-products daily – such as cooking gas and fuel for cigarettes – among others.
Guyana however utilises approximately 700 barrels per day of these products, which means the country will have to seek markets for 3,400 barrels of byproducts each day or 1,241,000 barrels on an annual basis.
- Ali, Electricity, export, gas, monetize
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