ExxonM to build new pipeline from 7th project to connect to Gas-to-Energy project

Feb 18, 2025 News

Kaieteur News- ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek Block will be constructing a new pipeline to transport gas from the seventh project- Hammerhead- to support the Gas-to-Energy (GTE) project.

ExxonM to build new pipeline from 7th project to connect to Gas-to-Energy project

Location of the Hammerhead Project in the Stabroek Block

This is according to the Environmental Impact Assessment (EIA) submitted by the developer to the Environmental Protection Agency (EPA). According to the 4232-page study, conducted by Exxon’s consultant, Environmental Resources Management (ERM), the pipeline will be about 13-kilometers and will be attached from the Hammerhead Floating Production Storage and Offloading vessel (FPSO) to the existing GTE pipeline.

In its project description, Exxon said Hammerhead will develop the offshore resource by “drilling approximately 14 to 30 development wells (including production and water injection wells); installing and operating Subsea Umbilicals, Risers, and Flowlines (SURF) equipment; using an FPSO to process, store, and offload the recovered oil; and installing an approximately 13-kilometer gas export pipeline from the FPSO to a tie-in on the Gas to Energy Pipeline.”

Exxon has already completed a 220-kilometers long pipeline that connects to the Liza One and Liza Two projects in the Stabroek Block and ends at the Wales Development Site, where the government plans to utilize the resources for power generation and other monetization options.

That structure is estimated to cost US$1B and is expected to be operational by the end of 2025. The pipeline, according to its EIA will be transporting approximately 50 million standard cubic feet per day (MMscfd; 1.4 million standard cubic meters per day [MMsm3/d]) of rich gas.

According to the Hammerhead EIA, several alternatives were considered for the associated gas in the project, including flaring or burning of the gas. Exxon said, “A key use of the associated gas is fuel for gas turbines used in power generation on the FPSO. Gas not used as fuel is then available for alternative uses. The three primary alternatives considered for managing associated gas include flaring, re-injection, and transfer.”

The study said continuous flaring of associated gas is not recommended due to the associated air emissions and because it would not meet regulatory expectations in Guyana nor be consistent with GIIP, so this option was not considered.

On the other hand, associated gas re-injection was evaluated as an option to maintain reservoir pressure and improve oil recovery, but was not selected for the Hammerhead field. Exxon explained that this is due to the likelihood that injected gas would move quickly through the reservoir back to the production wells, resulting in significant gas cycling, with negative implications for oil production. “Use of Project-associated gas in nearby producing fields was also evaluated, including the Uaru and Liza fields. Alternative considerations included injecting the Project associated gas for enhanced recovery purposes in offset reservoirs to maintain pressure and increase sweep of reservoir oil,” the EIA stated. It added that this option can be particularly effective for certain reservoirs and crude types as part of water alternating associated gas strategies, resulting in uplift in recovery.

Meanwhile, the study noted that associated gas transfer options were also considered. “The Project associated gas could be available, in conjunction with associated gas from other fields, to send to the Gas to Energy Pipeline to help support onshore demand growth. The selected Project’s associated gas utilization plan is to first use associated gas for fuel in gas turbines for power generation on the FPSO. The remaining associated gas will be transferred to the Gas to Energy Pipeline and either sent to shore and/or transferred to the Unity FPSO to enhance Liza oil production. This associated gas utilization plan was ultimately selected for associated gas management to maximize recovery at Hammerhead and Liza fields to fulfill potential onshore gas demand and eliminate routine flaring,” according to the Hammerhead EIA.

Some stakeholders believe that the plan to connect this new project to the GTE pipeline is linked to the fact that the Liza One and Liza Two resources are likely to be drained before the estimated 20-year lifespan. Kaieteur News reported on Sunday that the 20-year lifespan of the Liza One, Liza Two and Payara projects, all currently producing oil above the daily average outlined in respective project plans, have been reduced to less than five years. During a press conference last week, ExxonMobil Guyana President, Alistair Routledge, said he hopes that the Hammerhead project would receive the blessings of the GoG by mid-2025.

(ExxonM to build new pipeline from 7th project to connect to Gas-to-Energy project)