MORE benefits will soon be derived from Guyana’s burgeoning oil-and-gas sector, as five companies have placed their bids to construct the power plant and the natural gas liquids (NGL) plant as part of the gas-to-energy project, at Wales, West Bank Demerara (WBD).

The bids, according to Vice-President, Dr. Bharrat Jagdeo, ranged from US$450 million to US$900 million. The Vice-President was at the time speaking on the Glenn Lall show on Tuesday.
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), and a power plant to generate up to 300 MW of power with net 250 MW delivered into the Guyana Power and Light (GPL) grid at a sub-station located on the eastern bank of the Demerara River.

It will also include a 230 KV substation, and back-up fuel capacity, and a 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.

The gas will be transported to the facilities at Wales through a pipeline from the Liza Phase One and Liza Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels.
ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL), has guaranteed the government that a minimum of 50 million standard cubic feet of gas per day (mmscfd) will be transported through the pipeline by 2024. The pipeline, which is expected to cost US$1 billion, will have a maximum capacity of 130 mmscfd.

The conversion of natural gas from ExxonMobil’s offshore operations to electricity is a key component of the People’s Progressive Party/Civic (PPP/C) government’s objective to lower energy costs by at least 50 per cent through an energy mix which incorporates gas, solar, wind and hydro power.

This is crucial, since Guyana is thought to have one of the highest electricity production costs, globally, which has deterred many companies from making investments here.
During Tuesday’s interview, Dr. Jagdeo reiterated that Guyanese will benefit significantly from the gas-to-energy project.

“At US$1.7 billion, we will build this project; we will pay back for that project, and we’d be able to generate power at five cents per kilowatt hour, while paying back every cent, because the gas is coming free,” the Vice-President said.

He went on to say that with the project, the total generating cost, which stands at over US30 cents, will be reduced significantly.
Dr. Jagdeo, according to a previous report, had said that Guyana may save roughly US$150 million annually on power generation as a result of the programme.

“What this brings is long-term stability to the price, so we are immune from future market fluctuations, especially the upward movement of the cost of the Bunker C and other fossil fuels,” the Vice-President had said.