OIL and gas giant ExxonMobil has been pushing ahead with key infrastructural works needed to facilitate the construction of the multimillion-dollar Gas-to-Energy project at Wales, West Bank Demerara (WBD), the company’s local President, Alistair Routledge, said.

Routledge provided an update on the project during a press engagement held on Thursday at ExxonMobil’s operating centre in Kingston, Georgetown.

“We have been progressing early works in Region Three. Some of you may have seen bridge improvements, roads, laydown areas (and us) bringing a lot of sand in to begin the preparation of the land over there for that development. A lot is going on,” Routledge told reporters.

Though these works have commenced, ahead of the facility’s construction, the official said the company has not yet settled on its Final Investment Decision (FID) since it is currently awaiting the outcome of a review from the Ministry of Natural Resources.

ExxonMobil Guyana submitted a revised Field Development Plan (FDP) for the Liza field, in the Stabroek Block offshore Guyana, to incorporate facilities and plans to export gas from the field to onshore.

Currently, about 380,000 barrels of oil are being produced from the Liza Phase One and Lize Phase Two projects in this block. Now that the natural gas reserves will be tapped to supply the Wales project, the FDP has been modified.

The company has already completed an Environmental Impact Assessment (EIA) and received the Environmental Permit in November 2022.

“We are in the review process with the Ministry of Natural Resources currently on the Field Development Plan and the update to the licence for the Liza field. Once we have gone through that step, we’d be able to make all the Final commitments, Final Investment Decision (FID) around all the investments that are needed,” Routledge said.

He, however, highlighted that the company has determined that it can supply up to 50 million cubic feet of natural gas without impacting the quality of oil in any significant way.

The Gas-to-Energy Project will see a 200km 12-inch diameter pipeline channelling natural gas from the Liza Phase One and Liza Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels to a power plant and Natural Gas Liquids (NGL) facility that will be built in Wales, on the West Bank Demerara.

ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL)- the operator in the Stabroek Block, and its coventurers are constructing the pipeline. That pipeline will be landing on the West Coast Demerara shore and continue approximately 25 kilometres to the NGL and power plant facilities. It has an estimated cost of US$1 billlion and is cost recoverable.

The power plant and NGL facilities will be funded by the government. Last December, the Government of Guyana and US-based integrated energy solutions group – LINDSAYCA – in partnership with a local firm – CH4 Group – signed a US$759 million contract for the construction of the facilities.

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.