Latest update February 25th, 2025 10:18 AM
Latest News
- Five dead in road accidents
- 25 helicopter trips required weekly for preparatory work on 7th oil project—Exxon says in EIA
- Israel deploys tanks as assault on occupied West Bank intensifies
- Govt. seeking contractors for $1.9B Parika to Goshen Road project
- GHRA urges Gov’t to follow laws in dealing with US deportation issue
ExxonMobil still unable to state final cost of Gas-to-Energy pipeline
Two months after completion…
Kaieteur News- The 225-kilometer pipeline that will transport gas from the Liza Fields to the Wales Development site was completed before the end of December 2024 but the developer, ExxonMobil Guyana Limited (EMGL) is still unable to state the final cost of the structure.
President, EMGL, Alistair Routledge during a recent press conference
During a media conference, Country Manager Alistair Routledge informed invited journalists that the pipeline was completed in line with its commitment to deliver the structure before the end of 2024. He said, “The gas-to-energy pipeline has been completed. It is now connected from the FPSOs Liza Unity and Destiny all the way to the shoreline and onshore to the Wales location.”
Routledge explained that the company is now awaiting the completion of the Natural Gas Liquids (NGL) facility and power plant being constructed by the Government of Guyana (GoG) to utilise the resources.
In response to a question from this newspaper on the cost, he said that he was not able to provide the final figure, although it remains around the original estimate of about US$1B. “The cost of the pipeline, the estimate was US$1B, we are still in the process of closing out contracts for all the different supplies. I don’t have an absolute final number at this stage but it is very much in line with the original budget of US$1B,” he assured.
Notably, ExxonMobil has proposed an additional 13-kilometer gas export pipeline from its seventh project- Hammerhead- to connect to the GTE pipeline. This was revealed in its Environmental Impact Assessment (EIA) for the development.
According to the document, “The Project’s 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.”
Associated gas from the seventh project will first be used for fuel to power the FPSO while the remaining resources will be piped to shore. The EIA explained, “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.”
Notably, it was previously explained that the GoG will be purchasing gas from Exxon to repay the cost of the existing structure. Cost recovery was slated to commence following the startup of the GTE project.
It is unclear what the price of the additional pipeline to supply gas to the project will be. There are also no details on the repayment mechanism for the proposed transport facility.
(ExxonMobil still unable to state final cost of Gas-to-Energy pipeline)
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The PPP/C’s rotten return
Peeping Tom… Kaieteur News- The People’s Progressive Party/Civic (PPP/C) ought to have treated its loss in the... more
Why the U.S. Should Strengthen Trade Ties with the Caribbean
By Sir Ronald Sanders Kaieteur News- A rules-based international trading system has long been a foundation of global commerce,... more
Weekend Cartoon
