–says Liza Destiny FPSO now well equipped with new flash-gas compressor

THE new flash-gas compressor for the Liza Destiny Floating, Production and Offloading (FPSO) vessel has been installed, and the vessel is now operating with minimum background flaring, according to ExxonMobil Guyana’s Production Manager Mike Ryan, during a press conference held at the company’s Duke Street Office, on Tuesday.

The Liza Destiny’s flash-gas compressor was damaged in January, 2021, and resulted in the company having to temporarily increase gas-flaring above pilot levels, in order to maintain safe operations.

Flaring is the practice of burning natural gas to ensure safe operations on board the FPSO vessel, which, in this case, is servicing the Liza Phase One project.

Owing to this exercise, however, the company has had to pay millions of dollars in fees to the Environmental Protection Agency (EPA) for the period that it was flaring.

Ryan said the company, up to June this year, paid over US$10 million in gas-flaring fees. This, he clarified, covers the period from when the fee was implemented.

The fees were paid as a result of an amendment to the Liza Phase One environmental permit, which saw a fee being instituted for increased flaring at the Liza Destiny operations. The amendment was instituted in May, 2021, and initially stipulated that the operator pay US$30 per tonne of carbon emitted.

The company has faced much backlash over gas-flaring, particularly because of its contribution to greenhouse gases and climate change.

Prior to the installation of the flash-gas compressor, the company had applied to the EPA and received approval to flare up to 15 million standard cubic feet per day (mscfd), but Ryan said the company was able to achieve levels below seven mscfd, and maintained compliance within those limits at all times.

“Those expectations were set and closely monitored by the EPA, while the flash-gas compressor was either being installed or operating in its previous mode. We’ve maintained full compliance.

“So, while we weren’t at the background [flaring level] we worked extremely hard to minimise the amount of flaring. So, we’re really happy to be back to where we planned and that is where we are in the unity [as well], less than one mscfd and within the expectations that we work with EPA,” Ryan said.

He credited SBM offshore and MAN Energy Solutions for its contribution to fixing the problem aboard the Liza Destiny FPSO.

He said those companies stood the cost of replacing the compressor, since they were the contractors who fabricated the FPSO and procured and installed the gas compressor.

The old compressor for the Liza Destiny is now expected to be sent to Germany for repairs and upgrading and will then be returned to Guyana and be kept as a spare.

“That’s part of the reliability and operations excellence… you want to make sure you have robust spare parts so that in the event that something does happen, you’re ready. So, we’ll upgrade that machine and have it back in Guyana and have it as a spare,” Ryan said

Also, regarding reliability and operational excellence, he related that the flash-gas compressor aboard the Liza Destiny FPSO will be monitored over the next few months.

“We’re in what you call endurance run. What we will do is monitor every aspect of that machine to make sure that it’s acting as we expect. It’s actually performing better than we had planned. So, that will inform us to finalise all of our documentation, close out this chapter and then run it for the next 20 years,” Ryan said.

While on the topic of flaring, he also said that the Liza Unity FPSO servicing the Liza Phase Two project, is also operating with minimal flaring which was achieved within 60 days after the vessel started production in February.