Latest update March 26th, 2026 7:55 AM
Mystery surrounds cost of Exxon’s gas pipeline
…as company refuses to disclose figures for project
(Kaieteur News) – In two months’ time, the 220-kilometer Gas-to-Energy (GTE) pipeline will mark one year since completion in December 2024. The structure was designed to transport gas from the Liza fields in the Stabroek Block to the Wales Development Zone, West Bank Demerara where the Government of Guyana (GoG) is currently constructing a power plant and a Natural Gas Liquids (NGL) facility.
The 12-inch diameter gas pipeline constructed and laid by ExxonMobil
Delays in the completion of the two gas plants resulted in the pipeline being left dormant until the facilities are ready for startup. In the meantime, there is a cost attached to ensuring that the pipeline is kept safe, which was constructed by ExxonMobil to the tune of approximately US$1B. It is Guyana that is ultimately responsible for financing these costs. As such, this newspaper recently asked the company to state the cost of maintaining the pipeline and for a disaggregation of what specifically the funds are spent for.
Exxon ignored the question and instead reminded of the company’s responsibility to monitor the pipeline. It explained, “ExxonMobil Guyana is responsible for covering the costs associated with monitoring, preserving, providing surveillance, and maintaining the pipeline until the integrated power plant is ready for startup. We are actively collaborating with the Government to support the commissioning of the joint pipeline and power plant facilities.”
In December last year, the Maritime Administration Department (MARAD) issued a public notice indicating that the pipe laying works were completed. Since October 2024 President of Exxon Guyana, Alistair Routledge told reporters 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 year end. In this vein, he said, “So delighted to see that on course and on budget as well.”
The Country Manager explained that it was not unusual for varying elements of a major project to be come on stream at separate dates.
As such, he pointed to measures that will be taken by Exxon to secure the US$1B pipeline. “What we will do is we’ll complete the pipeline and we will make sure that it is secure. Generally, we will leave it with an inert gas like nitrogen, perhaps with treated water, we are looking at the details of that depending upon how long we think it will be left idle until we are ready to commission it with gas which would be when we already know that the plant is ready to receive gas,” Routledge said.
He added, “We’ll do the testing of its integrity, but there will be a blind flange on the end of it waiting for the new plant to be connected and in the meantime, we will just keep that pipeline if you like, in earth and safe, ready to go for the operation.”
Since then, Kaieteur News understands that contracts have been awarded for monitoring the structure, among others. This newspaper was told that drones are being used to provide surveillance of the onshore pipeline which runs from Crane, West Coast Demerara to the Wales site. The contract was awarded to a local company.
Pipeline cost
To date, Exxon has not publicly revealed the final cost to construct the pipeline. Routledge was asked to share the figure after he announced the completion of the structure, but he refused, explaining at the time that the company was still closing up contracts with companies for the works.
Last November, Exxon’s Country Manager 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 sometime next year when we wrap up all the contracts.”
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