— robust Working Group established

DIRECTOR of the Department of Energy (DoE), Dr. Mark Bynoe said on Monday that plans to bring gas to shore are still progressing with the crafting of a Draft Memorandum of Understanding (MoU) and the establishment of a competent Working Group.

“One of the things we’re currently looking at is brining gas to shore. In fact, we’re not looking at it, it’s well-advanced. We have a Draft Memorandum of Understanding; we have established a very cogent Working Group and this is made up of critical players within the government and we hope to engage the private sector as well, so that they can understand what the opportunities are,” Dr. Bynoe said, as one of the guests on NCN’s Independence Forum.

The DoE is preparing to get natural gas to shore by 2023, even though the gas would not be available in “significant quantities” until 2035. Prior to 2035, oil-and-gas operators have indicated to the DoE that they can make enough gas available to meet domestic demand.

An established power plant could see the generation of about 188 megawatts of power that would save the Guyana Power and Light (GPL) significant sums of money. There could also be enough Liquid Natural Gas (LNG) to provide Guyana with four times the quantity of cooking gas that is used per day.

However, on Monday, Dr. Bynoe explained that brining gas to shore is no easy task and requires careful planning.

“Bringing a gas-to-shore pipeline is not something that is done overnight,” Dr. Bynoe began.

“It has to be done based on cogent and realistic studies. One has to take into consideration where the built-up demands are and what would be the expectations for future demand in terms of utilising that gas and what other proposals government may have in place for the utilisation of gas, because it’s not just about bringing gas for energy, gas can be used for a multiplicity of other purposes.”

Naming one of these purposes, he spoke to petrochemicals which can be used in the agriculture sector and to manufacture thousands of different products. Meanwhile, the DoE has begun to examine potential sites where a “gas pipeline” can land with special consideration being given to the land-use type and tenure arrangement.

This is why the established Working Group also comprises expert personnel from GPL, the Ministry of Public Infrastructure (MoPI) and the Guyana Lands and Surveys Commission (GLSC).

Putting into perspective how Guyanese will be able to directly benefit from gas onshore, the DoE director said: “Gas is significantly cheaper than the Heavy Fuel Oil (HFO) which we currently utilise. So, having it injected into our system will also help to lower the general cost of energy-generation and distribution which will ultimately benefit the end users.”

He said that while many have questioned whether such plans are in contradiction with Guyana’s Green State Development Strategy (GSDS), he often points them to the bigger picture.

Dr. Bynoe said that the gas to come on shore will have a much lower carbon footprint than what is currently being used; there are substantial offsets in Guyana’s forest resources and there are possibilities for the Carbon Capture and Storage (CCS) and injection of carbon waste dioxide.

Apart from brining gas on shore, the DoE director said that there are many investment opportunities for locals and foreigners in Guyana. He said that these opportunities fall within the categories of current, medium and long-term investment. They also speak to investments in the upstream and downstream areas.

Before Guyana moves towards its planned diversification of interest in the Guyana basin, it must develop a robust legislative framework, conduct its own seismic surveys and develop a new production-sharing contract.

During this period and into the future, there will be need for an increase in ‘lay down yards’ or shorebases; greater investments in building capacity in areas such as welding and fabrication; additional logistic support and additional infrastructural support which includes accommodation facilities.

Dr. Bynoe stated: “We need to create the environment for those investments to be made. We are not here to select winners and losers. If we can create the environment, the private sector of themselves will find those niches and will pursue those niches.”

He also reminded that Guyana’s other complementary sectors also ought to be equally examined for their opportunities that will increase through the injection of oil-and-gas revenues into the economy.