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Show us the production forecast for Liza One and Liza Two – Civil Society Activist
Diagram showing the two FPSOs to be used in the GTE project and the additional infrastructure to generate electricity.
…as concerns swell over feasibility of Gas-to-Energy project
Kaieteur News – As concerns continue to balloon over the feasibility of government’s US$2B Gas-to-Energy (GTE) project, civil society activist Elizabeth Hughes is requesting information on the production forecast of the two projects that will supply gas to the power plant.
Civil Society Activist, Elizabeth Hughes
The GTE project comprises three elements, the pipeline to transport the gas – presently being constructed by ExxonMobil – a Natural Gas Liquids (NGL) facility to treat the gas and a power plant to generate some 300 megawatts of electricity is being pursued by the government.
Hughes in a letter addressed to the Minister of Natural Resources, Vickram Bharrat; the Environmental Protection Agency (EPA) and GTE Taskforce, last week requested the production forecast of the projects, as these are expected to supply the power plant with gas over its 20-year lifetime.
The activist’s letter to the respective agencies comes amidst ramped up oil production at both projects by ExxonMobil. This has therefore sparked further questions about the feasibility of the project, since depleted oil wells will force the operator to turn to other projects for gas to supply the power plant.
Notably, the Liza One project which commenced production activities in 2019 was designed to produce up to 120,000 barrels per day (bpd) while Liza Two was designed to produce 220,000 bpd. Both have an estimated life of 20 years. Presently, the two projects are each producing 150,000 bpd and 250,000 bpd, respectively. This could force ExxonMobil to turn to its other oil producing developments to meet the gas demand for the power plant which would inevitably drive up the cost of the GTE project.
Government in April 2023 applied to the US EXIM Bank for a loan to support the NGL and power plant aspects of the GTE project.
Since the government did not conduct a feasibility study, the bank conducted its own assessment of the project and is said to be in the process of reviewing its findings before a final decision is made regarding the US$646M loan application.
Hughes in her letter requested that the production profile forecasts; reservoir performance evaluation and prediction; decommissioning plan and risk management be shared for the Liza One and Liza Two projects.
The activist further requested these details for the Payara, Yellowtail, Uaru and Whiptail projects, since gas from these fields could be used to meet the required capacity for the project of about 120 million standard cubic feet per day (MMscfd). With the GTE project poised for startup next year, she also requested that the gas sales agreement and other commercial documents for the project be made public.
Hughes was keen to note, “This information is a necessity for submissions in the aforementioned EXIM Bank system before the closing date in or about 12 July 2024. This relevant data forms an integral part of the assessment of the Gas-to-Energy project’s viability over its proposed 25-year life. Failure to provide the requested information before the deadline date may be construed as a direct action by GoG to deny civil and/or civic society’s right to information thereby stymieing their resistance to the implementation of the GTE project where to date, there has been no public disclosure of any feasibility study.”
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