…Dr. Bynoe says significant quantities not until 2035

By Navendra Seoraj
WITH the oil and gas sector set to come on stream sooner than expected, the Department of Energy has been making preparations to get natural gas on shore by 2023, but the gas would not be available in “significant quantities” until 2035.

This is according to Director of the Department of Energy, Dr. Mark Bynoe, during a press briefing held in the studio of the National Communications Network (NCN), on Wednesday. “In the discussions around gas, the petroleum agreement speaks to the fact that the priority is oil recovery and in the discussion with the operators, they indicated that to enhance oil recovery you would have to use some amount of reinjection of gas,” said Dr. Bynoe.

Considering this fact, he said gas is not likely to be available in significant quantities until 2035 and beyond. Although gas would not be available in significant quantities until then, the oil and gas operators have indicated to the department that they can make enough gas available to meet the domestic demand. This, Bynoe said, would generate about 188 megawatts of power.

With the possibilities already laid out, the department has started to examine potential sites where a “gas pipeline” can land. The department is looking to land the pipeline by 2023 and 2024.

In making preparations to land the pipeline, Dr. Bynoe said the department would have to consider a number of factors. “There are a number of considerations when we start speaking about gas, you do not want to be building a pipe now and then realise the pipe is too small for when more substantial gas becomes available ,” he said.

In addition, the department would also have to consider “building out,” in the sense of having an industrial park so that there can be subsequent or additional industries. “When we start speaking about petro chems, LNG (Liquefied Natural Gas), bitumen, then the whole discussion will involve issues of exportation…We have to start thinking about access to water to make that possible,” said Dr. Bynoe.

In that regard, he said preparation involves more than just a plant, it also includes strategic decisions that have to be made. Dr. Bynoe reiterated that the department will, however, be working actively to get gas to shore by 2023.

It was reported early this year that the infrastructural landscape of Guyana is set to undergo a significant shift with the extraction of oil and gas from 2020. The Department of Public Information (DPI) had reported that concerning energy production, the coalition government will be using the nation’s newfound natural gas to bolster GPL’s electricity grid.
“So, we have gas. What we are doing is building out the architecture. It comes in by pipeline and we will have a 188megawatt power plant,” said Minister of Public Infrastructure, David Patterson, in the report.

This initiative will comply with the Government’s Green State Development Strategy (GSDS) Vision 2040, which seeks to ensure oil extraction in association with natural gas production is done most beneficially.

With the new power plant in operation, it is expected to produce a surmountable amount of energy unlike any existing power plant in Guyana. Also, the new power plant will result in astronomical savings for the country since power generation costs will decrease.
Natural gas is said to be a mixture of gases which are rich in hydrocarbons. All these gases (methane, nitrogen, carbon dioxide) are naturally found in atmosphere. Natural gas reserves are deep inside the earth near other solid & liquid hydrocarbon beds like coal and crude oil.

Natural gas is not used in its pure form; it is processed and converted into cleaner fuel for consumption. Many by-products are extracted while processing natural gas like propane, ethane, butane, carbon dioxide, nitrogen and so forth, which can be further used.
It was reported in sections of the international media that in the week ended November 1, natural gas prices surged 18 per cent. This was reported as the largest weekly gain for natural gas active futures since the week ended January 24, 2014.