IN recent days, the new government has stated it would refocus its attention on the much-talked-about concept of bringing natural gas from the Stabroek oil field offshore to power Guyana’s electric grid. The PPP is understandably eager to make its own mark on Guyana’s development, and has pledged its commitment to projects that bring quick and tangible benefits to our people. Taking advantage of the gas resources found in the Stabroek Block, and transitioning to gas-to-power infrastructure is one way that the new government can accomplish exactly that.

Gas-generated electricity has significant positive benefits over the heavy fuel oil plants that Guyana currently uses, and has been shown to decrease the cost of electricity, provide a more reliable power supply, and contribute to cleaner air and a better business environment. Although increased government revenues is the most immediate and significant benefit from Guyana’s new oil development, lower energy costs for Guyanese consumers and companies would be a major bonus for us all.

ExxonMobil Guyana President, Alistair Routledge told reporters recently that about one-fifth of the resources discovered so far in the Stabroek Block contain natural gas, most of which would be associated gas produced with the crude oil.
High energy prices have been highlighted by CARICOM as a limiting factor in the cost of doing business, while the International Monetary Fund (IMF) has stated that a gas-to-power plant is a potential bonus from the oil development of Guyana. Furthermore, lower emissions with the use of a gas-to-power plant will benefit residents, commercial businesses, and international industrial consumers operating in Guyana.
At a recent press conference, Vice-President Bharrat Jagdeo made it clear that the government will make approving a pipeline to shore and a new power system a priority.

While the development of this project, and the construction of a subsea pipeline would take a number of years in Guyana, the IMF reports that switching to gas could save Guyanese customers up to G$29.01 per kilowatt hour. This decreased cost will not only make life easier for local residents by making energy more reliable and cheaper, but will also make the cost of doing business lower for local companies. One of the main concerns among businesses has long been the high cost of energy and regular blackouts. Those costs make it hard for many energy-intensive industries to thrive here.
An efficient fast-tracked approval process for gas-to-power could further expand the gains that have already been made in local content. With dozens of Guyanese returning from international training programmes ready to work in the energy industry, adding gas and gas power plants to Guyana’s expanding energy sector could offer additional opportunities for workers and companies to get involved.

In addition to lower costs, the project is also likely to have the positive secondary impacts of lowered emissions and efficiency. Natural gas plants release less than half the carbon dioxide emissions of heavy-fuel oil plants, and almost none of the dangerous particulate emissions. They’re also considered highly compatible with renewables development, since they can rapidly cycle on and off to make up for periods of time when the wind isn’t blowing, or the sun isn’t shining.

Former Trinidad & Tobago Energy Minister Kevin Ramnarine, who was recently named by the government to serve on a panel to review Guyana’s local-content policy, said the “real potential (of gas) lays with power generation, which will ultimately lead to cheaper and cleaner electricity for the country.” He told industry publication, OilNOW that there could be enough resources in the Stabroek Block to supply a 180-megawatt power plant.
The gas-to-power plant opportunity that Guyana has will significantly improve the long-term development of Guyana by lowering energy prices, making electricity more efficient and reliable, and decreasing emissions.

These impacts will be tangible for not only families in Guyana, but for businesses working and investing in the development of the country. These benefits will also open new doors for new industries, especially manufacturing, to enter the Guyana market and create more economic activity, positively effecting people, and businesses.