–to maximise economic benefits, drive advancement, President Ali says
AS Guyana continues on the journey towards achieving economic prosperity through the careful management of its energy sector, President Dr Irfaan Ali has said that “the time to develop our gas is now”.
“In addition to the current and future oil development in Guyana, the Government of Guyana has made the strategic choice of developing all of its gas resources in a timely manner to maximize the economic benefit associated with such development,” President Ali said during his remarks on the opening day of the Guyana Energy Conference and Supply Chain Expo at the Marriott Hotel on Monday.
He said, too, that the government is also working on substituting fossil fuels, such as diesel, to accelerate the transition to a low carbon energy platform.
The Head of State, however, reminded stakeholders that “time is of the essence” owing to market forces and uncertainties.
“There is an immediate window of opportunity between now and the end of the decade to monetise and maximise the value of Guyana’s natural gas resources; the time to develop our gas is now!” Dr. Ali emphasised.
The President mentioned the launch of the Request For Proposals (RFPs) for the designing, financing, construction and operation of the required gas infrastructure.
This strategy is part of a pivotal roadmap for managing the nation’s significant gas resources. It also serves as a vital tool for Guyana to make informed decisions regarding the utilisation of its gas resources.
The Stabroek Block, along with the Corentyne Block, holds substantial gas resources. Ongoing exploration and appraisal activities are underway to determine the full extent of Guyana’s gas resources.
The President then went on to say: “New infrastructural solutions in Guyana to develop and monetise our natural gas will undoubtedly support our CARICOM brothers and sisters, and friends in Latin America to attain energy security whereby Guyana will be uniquely positioned as a regional energy hub.”
Making reference to another one of the nation’s revolutionary developments, the Gas-to-Energy project, which will see Guyana’s gas resources being utilised in a manner that will usher in massive development, Dr. Ali said: “We have already seen that that second phase of gas coming in will have to support a second power plant that is based on the interest, just interest in manufacturing, industrial development…”
For context, Phase Two associated gas is planned to be utilised for liquefied natural gas (LNG) production, depending on the capacity.
TRANSPORT AND LOGISTICS
Guyana’s development in the oil-and-gas sector will serve as a catalyst for the transformation of almost every other sector.
According to the Head of State, the first phase of gas, that is the 40 per cent capacity of the pipeline, is approximately 4,000 barrels of propane-butane per day.
But what does this mean for Guyanese? Giving insight, Dr. Ali said that the normal consumption now is 800 barrels per day, so Guyana will be producing at least 4,000 barrels. This is in Phase One- 40 per cent of the pipeline.
“Our local consumption is 800 barrels. Immediately, we have 3,200 barrels available for export… [this] has to be transported,” he said while adding that this is where the Corentyne River Bridge, which will link Guyana and Suriname, can play an integral role.
In October 2023, two companies, the Dutch engineering company, Ballast Nedam, and Chinese-owned China Road and Bridge Corporation (CRBC) submitted proposals to build the bridge over the Corentyne River to link Guyana and Suriname.
The project will be facilitated through a public-private partnership arrangement, which means that the successful contractor or joint venture will be responsible for its final design, construction, financing, operation, and maintenance.
President Ali also noted: “So, let us look at full capacity…which we don’t foresee to be long after phase one, we are looking at 10,000 barrels per day that is propane…So you’re moving to 10,000 barrels per day. Now what does this mean for us? This means for us, that even with the growth in our demand, we will have 9,000 barrels per day ready for export.”
Shutting down any narratives being peddled by detractors of development, the Guyanese Head of State stressed: “When people ask why build roads? Why build bridges? This is the economic link it creates…If we don’t have it, then we will sit on 9,000 barrels of propane and it can’t hatch.”
Expounding on how making investments in supply chain transport logistics could form critical links to opening up opportunities for Guyana, the President did not hesitate to point out that job creation and the formation of businesses will be by-products.
