– Routledge confirms

ExxonMobil has reaffirmed its commitment to completing the crucial gas-to-energy project by the end of the year, signalling a major leap towards energy sustainability and reduced costs for Guyanese citizens.

During a recent press conference, the President of ExxonMobil Guyana, Alistair Routledge provided an in-depth update on the progress of the pipeline infrastructure that is set to transform Guyana’s energy landscape.

The project, which involves laying a 200km, 12-inch diameter pipeline, will channel natural gas from the Liza Phase One and Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels to a state-of-the-art power plant and Natural Gas Liquids (NGL) facility in Wales.

Routledge outlined the extensive scope of the pipeline’s journey, from deepwater installations to its onshore segments

“…All the way from connections we’ve talked about on the FPSOs, the risers, the deepwater pipeline; all the way up onto the shallow shelf, crossing the seawall, and then all the way down to Wales for the onshore pipeline. At that point, it passes over to the government, who is responsible for the integrated plant for the NGL extraction and the power generation, and then the tie-in to the national grid,” he detailed.

Thus far, the project has seen significant advancements with approximately 40 per cent of the onshore pipeline laying completed and the offshore portion about 55 per cent finished.

“Last year, we had installation campaigns in two parts: we had the ultra-shallow piece, which are mud flaps at low tide…we did about 18 kilometres. So, we executed a good portion of that…then we also installed in the shallow water…going from that 18-kilometre mark out to where the shelf drops down into the deep water,” Routledge added.

Esso Exploration and Production Guyana Limited (EEPGL), along with its co-venturers in the Stabroek Block, are behind the pipeline’s construction, which has an estimated cost of US$1 billion and is cost recoverable.

The Government of Guyana has earmarked $80 billion in the 2024 budget for the project, highlighting its significance to national development.

Moreover, in December 2022, the Government and US-based LINDSAYCA, in collaboration with the local CH4 Group, signed a US$759 million contract for constructing the power plant and NGL facilities, reinforcing the project’s momentum.

As the project moves forward, Routledge highlighted ongoing coordination with developers to align commissioning plans, ensuring a seamless transition into the operational phase.

“We are on schedule and will have that completed and ready to introduce gas by the end of this year. Then there will be coordination. We have an ongoing coordination interface activity with the developers for the plant so that we can align the commissioning plans as appropriate,” he assured.

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.