Exxon completes Gas-to-Energy pipeline

Dec 31, 2024 News

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…but agreement with company hidden, final cost of project still unknown  

Kaieteur News- ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek Block, has completed the pipeline component of the Gas-to-Energy (GTE) project, even as the agreements between the company and the Guyana Government continue to be hidden from the public.

According to a Notice from the Maritime Administration Department (MARAD), pipeline laying works commenced in June of 2023.  ExxonMobil was granted a Permit by the Environmental Protection Agency (EPA) for the project on November 25, 2022.

A new Notice by MARAD, dated December 27, 2024, indicated that the pipe-laying activities from the West Coast Demerara to the Stabroek Block within Guyana’s Exclusive Economic Zone has been completed. “The laid pipeline stretches from the West Coast Demerara to approximately 105.6 nautical miles (195.6 kilometres) offshore Guyana,” the Maritime Department said.

Further, it explained that a 500 meter-pipeline protection area on either side of the structure has been established and covers an area of 56.8 square nautical miles or 194.9 square kilometres.  All mariners have been advised to stay clear of the pipeline and navigate with extreme caution when in the vicinity.

Although the structure is now completed, Guyanese are yet to see the deal signed between the GoG and Exxon with regard to the structure. In fact, the country is also in the dark on the final cost of this component of the project.

When President of EMGL, Alistair Routledge was asked about the final cost of the project by Kaieteur News he said, “I don’t have a final number.”

This, even though he previously highlighted that all contracts were awarded for the structure.

In October, Routledge told reporters at a press conference that the pipeline was mechanically completed. He explained, “It’s been hydrotested, pressure test and we have been going through the dewatering exercise and then introducing nitrogen so we have a pipeline that is ready to introduce natural gas…”

He noted that Exxon’s responsibilities including the risers, pipeline through the deep-water, shallow water and onshore is on schedule for completion by this year end.  In this vein, he said, “So delighted to see that on course and on budget as well.”

Exxon’s Country Manager later told this publication that the company is confident that the project is on budget since all contracts have been awarded.  He, however, noted “there will always be some final negotiation on any sort of details that the contractors might want to confirm. We’re on that billion-dollar number.”

When pressed to say when the final price tag for the project would be revealed, he said, “It would be some time next year when we wrap up all the contracts.”

Head of the GTE Taskforce, Winston Brassington previously indicated that the pipeline is expected to cost US$1B.

Hiding GTE documents

Despite calls from various sections of society for the agreements between the GoG and the contractor to be made public, the government has not budged in releasing the documents.  In fact, it continues to make failed promises to release the documents to the public.

Earlier this month, Kaieteur News reported that Prime Minister (PM) Brigadier (ret’d) Mark Phillips, for a third time promised the National Assembly to lay over the agreement signed with EMGL for the GTE project.

On that occasion, the PM apologized to the National Assembly for failing to provide the response and again promised to ensure the necessary information and documents are provided.  According to him, this will be laid as soon as possible.

“Mr. Chair, if I had failed in offering my response as requested by the honourable member, let me apologize to this honourable House and I will seek to, in the shortest possible time, honour that request,” the Prime Minister said.

Since 2022, the government signed a Heads of Agreement with the Stabroek Co-ventures that outlines the principles and conditions for the commercial and technical arrangements of the deal.

Minister of Natural Resources, Vickram Bharrat, was also asked about the release of the agreement in Parliament when he explained that it could not yet be made public.

Bharrat, in a written response to Opposition Member of Parliament (MP), David Patterson, stated that the agreement outlines the principles and conditions for the commercial and technical aspects of the project.

“Mr. Speaker, the Government of Guyana has signed a Heads of Agreement (HOA) with the Stabroek Co-ventures 30th June 2022.  This agreement sets out the principles and conditions for the commercial and technical arrangements of the Gas-to-Energy Project,” Bharrat said.

Patterson, in his request for the information, submitted to Parliament on October 18, 2022, had asked whether any agreements were signed with Esso Exploration and Production Guyana Limited in connection with the Wales project and if yes, for the Minister to supply the House with a copy of the said agreement.

However Bharrat, in his response to Patterson said, “There are other agreements on supply, buyer’s agreement, field development, licensing conditions, onshore works, and land matters that are currently being drafted. The respective agreements and policy documents will be presented to this honourable House when they have been agreed upon and executed.  All agreements are being done in a timely manner to meet the Final Investment Decision, which will allow for the project to be completed by our committed deadline of December 2024.”

(Exxon completes Gas-to-Energy pipeline)

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• agreements, complete, cost, document, gas, GTE, hidden, pipeline

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