— to study utilisation of natural gas for electricity generation
ENERGY Narrative, an internationally recognised entity that provides strategic market analyses to industry and Government leaders across the Americas, will be conducting a study on the utilisation of natural gas for electricity generation here in Guyana at a cost of US$70, 000.
Minister of State Joseph Harmon made the disclosure on Thursday, while addressing reporters during a press conference at the Ministry of the Presidency.
It was explained that the study is being done on the basis of a proposal put forward by Minister of Public Infrastructure David Patterson to engage a consultancy firm to undertake a study on the options, cost, economics, impacts and key considerations of transporting and utilising natural gas from offshore Guyana for electricity. When Cabinet met earlier this week, approval was granted.
“Energy Narrative is an experienced company in the energy sector in the Caribbean and understands the challenges of developing natural gas infrastructure and adapting the electricity sector to accommodate natural gas,” Minister Harmon explained.
The company, he added, will verify the projected demand for natural gas, analyse the technical feasibility on the proposed natural gas pipeline and compare the proposed natural gas pipeline with other transportation mediums.
Additionally, Energy Narrative is expected to analyse the cost to deliver natural gas and the estimated impact on electricity prices.
The study was scheduled to commence this month and run for a period of eight weeks.
This is one of several feasibility studies being conducted at a time when the country is gearing up for the production of oil and gas from 2020.
Earlier in this year, a consultant, Pedro Haas, the Director of Advisory Services at Hartree Partners, was retained to provide a high-level feasibility assessment to the Government on whether investing in an oil refinery is a viable economic option.
Hartree Partners is a company based in the United States and is involved in providing advisory services in upstream and downstream trading and regulatory subjects in the oil and gas industry.
It was explained that the services of Haas were secured through the New Petroleum Producers Group of the Royal Institute of International Affairs, ‘Chatham House.’
The consultant was expected to examine the demand, availability, the economic landscape and forecast. His findings, Minister Trotman said, will influence Government’s decision.