…via Wales gas-to-shore project

GUYANA could generate between $70 – $100 million from the sale of cooking gas and it is among the many benefits that will be derived from the Wales gas-to-shore project, Vice-President, Dr Bharrat Jagdeo said during a recent press conference.
He told reporters that savings on fuel imports, reduction in energy costs, and savings from the manufacturing sector are some of the biggest benefits expected to come out of the gas-to-shore project, but he highlighted that there is room for the country to also gain with the sale of cooking gas.
“If you look at the cooking gas, we will get, from drying the gas, and creating lean gas, we will be able to sell back and get the money. We anticipated probably maybe $70 million to $100 million a year from selling gas at current prices, and that will come to the government,” the Vice-President explained.
The Wales gas-to-shore project, which will see gas being piped onshore, is considered one of the major ways in which the government is seeking to gain more benefits for Guyana from the oil-and gas-sector.
Once operational, the heavily touted project is expected to have a duration of approximately 25 years, according to ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL). However, the benefits expected during its existence is expected to largely outweigh the expected imputed costs for the project.
“This project is going to be a great project for the country, it would help us to stabilize power, supply more power, supply cooking gas to the country, and create the basis for the industrialization of that whole West Coast because remember the additional gas coming in will be used for other types of factories and that is why we believe it is a great project for the country,” Dr Jagdeo reasoned.
The project will also see the establishment of a pipeline to transport the gas to shore, and a power plant and Natural Gas Liquids (NGL) facility at Wales on the West Bank of Demerara.
The pipeline for the project will be funded through ExxonMobil, as a costing under the oil-and-gas operations, while the government will have a 20-year arrangement to pay back for the power and natural gas liquid (NGL) facility. The gas being piped to the facility will be provided free.
With the costing only being applicable to the infrastructure being established and the gas being provided for free, it also increases the benefits being derived from the facility.
“Since the gas is for free, you’re paying for the pipeline that is the fuel cost basically,” the Vice-President said.
“So, in 20 years, we can fix the price of electricity without any escalation. So, that is on the pipeline side. Then on the NGL side the same principle [applies] if they fund the NGL facility. Right now, we have the option of owning both the power plant and the NGL facility, which we are more likely to pursue.”