OIL and gas giant ExxonMobil has made significant strides in installing the infrastructure that is needed to support the ambitious gas-to-energy project at Wales, West Bank Demerara (WBD), according to the company’s local President, Alistair Routledge.

Routledge offered insights into the project’s progress during a recent press briefing held at ExxonMobil’s operating centre in Kingston, Georgetown.

ExxonMobil, on behalf of the Stabroek partners and the government, has been committed to initiating key infrastructural works, particularly in Region Three. As such, Routledge said that he is “pleased” to see the progress being made so far.

He explained that they have successfully undertaken site clearing and preparation of a substantial 100-acre area, which will serve as the foundation for the integrated plant.

Routledge pointed out that this facility will be instrumental in separating natural gas liquids from methane, creating a distinct revenue source for the government, and generating power for stations.

“All the preparatory work has been completed,” Routledge said as he explained that Exxon has “handed it over to the companies tasked with designing and constructing the integrated plant,” he said.

Routledge further explained that the said companies have initiated the installation of concrete drains to control drainage and land settlement, paving the way for civil construction.

“Other than that, in the early works we’ve also been reinforcing bridges, improving roads for heavy vehicle access and constructing a material offload facility on the West bank of the Demerara,” he said.

The facility, Routledge said, which is being constructed by Gaico Construction Inc. will be handed over to the government soon.

This facility will play a crucial role in transporting the plant components to the Wales construction site. This progress is truly encouraging.

On the pipeline front, ExxonMobil has already initiated the welding and laying of pipes onshore. The project achieved a remarkable feat by drilling horizontally under the seawall near Crane, enabling pipe installation in shallow waters.

“We’re on track for completion of the pipeline by the end of 2024, in line with the commitment that we made,” Routledge added.

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 billion 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.