TWO companies, Subsea 7 and Van Oord have been awarded a multimillion dollar contract for the installation of the pipeline for the Gas-to-Energy Project.
The contract which was described as “substantial” by Subsea 7 was awarded to the companies from ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL).
According to a release from Subsea 7, the scope covers the project management, engineering, and installation of approximately 190 kilometres of pipeline, with an associated shallow water portion and onshore approach making landfall to the west of the Demerara River, along the coast of Guyana.
“We are honoured to have been selected for Guyana Gas to Energy. This is an important project to support the Guyanese people and we look forward to continuing our relationship with EEPGL in one of the most prolific and exciting development basins in the world,” said Craig Broussard, Vice-President for Subsea 7 US.
According to Subsea 7, their company’s share of the contract is valued between US$150 million and US$300 million.
Hans van Gaalen, Commercial Director for Van Oord, said the company is honoured to have been selected for the Guyana Gas to Energy project in co-operation with Subsea 7.
“Developing the coastal infrastructure for the project will allow our Subsea 7 and Van Oord consortium to positively contribute to the development of Guyana’s electricity supply which in turn will reduce Guyana’s dependence on imported fuels.”
It was disclosed that the entire Gas to Energy Project is estimated to cost more than US$1 billion inclusive of the pipeline, onshore and offshore components combined.
According to the Ministry of Natural Resources, the scope of the project covers combined cycle turbines; multiple-fuel consumption (including rich and lean natural gas, natural gas liquids, and diesel); powerplant to generate up to 300 MW of power with net 250 MW delivered into the Guyana Power and Light grid at a sub-station located on the East Bank of the Demerara River.
The project shall include a 230 KV substation and back-up fuel capacity; NGL plant with the capacity to process 60,000 cubic feet per day (MCFD) in the first phase and up to 120 MCFD in the second phase, capable of conditioning the gas and removing heavier hydrocarbons in the liquid form. Five-day storage for these products to be provided, as well as truck or river loading facilities; and the project will include related infrastructure and civil works for the above facilities.
The project will be located in the Hermitage, part of the Wales Development Zone, with approximately 150 acres allocated for it.
Notably, the government has invited interested parties to invest in its US$900 million Gas-to-Energy Project Wales Development Zone (WDZ). A public notice from the Ministry of Natural Resources stated that the WDZ was selected as the landing facility for the pipeline, following the consideration of more than 20 potential locations.
The pipeline, which would end in the WDZ, will measure some 225 km from the Liza area, where the natural gas is produced.
The project will see the establishment of a Gas-Processing Plant (GPP) and a Natural Gas Liquids (NGL) facility, capable of producing at least 4,000 barrels per day, including the fractionation (or separating out) of Liquified Petroleum Gas (LPG).
The government said a power plant will be established to generate 150 MW, with an additional 150 MW in a second phase, and that an industrial park will be established to comprise industries that could use gas, steam, and/or electricity.
ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL), has guaranteed the government a minimum of 50 million standard cubic feet of gas per day (mmscfd) will be transported through the pipeline by 2024. The pipeline will have a maximum capacity of 130 mmscfd.
The Gas-to-Energy Project, which is expected to come on stream by late 2024, is expected to reduce Guyana’s energy-sector emissions. The project will also cut electricity costs by more than half.