Gas-to-shore

Guyana's oil and gas industry expands with gas-to-shore project.

Guyana’s oil and gas industry is expected to grow rapidly over the next decade. International companies, such as Exxon Mobil, are looking to develop one of the world’s most promising, unexplored basins. This could position Guyana as one of the world’s fastest growing economies, according to the IMF.

Most recently, a new natural gas-to-shore facility has been announced with delivery due by 2023. This would be the single largest publicly finance venture in the history of the country but challenges remain.

According to a local energy official, “The location for the gas-to-shore facility is still unclear, there is some opposition to the Wales Sugar Estate from technical and environmental stakeholders.”

“The location for the gas-to-shore facility is still unclear, there is some opposition to the Wales Sugar Estate from technical and environmental stakeholders.”

Energy official, Guyana

A senior energy engineer in Guyana confirms, “I wouldn’t say the Wales estate has been confirmed yet. There are a number of nearer coastal areas previously considered, such as Mahaicony and Mahaica. Wales is further inland and we need to consider how technically feasible it is to get a pipeline there.”

Additionally, there is still some local resentment towards ExxonMobil, who are critical to the delivery and financing of this project, the engineer continues, “There is still a lot of controversy surrounding the fairness of the initial production contracts with ExxonMobil, so there will be a lot of scrutiny of their behaviour.”

Unusually for a project of this type in Latin America, the local community are very receptive to the idea, explains the engineer, “Wales needs the employment and economic benefits that this facility would bring, and the community are very receptive to it. The sugar facilities closed in 2016 and there are no jobs for local people.”

“Wales needs the employment and economic benefits that this facility would bring, and the community are very receptive to it.”

Senior energy engineer, Guyana

Equally, there seems to be little political risk as an independent energy consultant outlines, “The Government is under presser to deliver, they campaigned in the 2020 elections with the promise to reduce the cost of electricity. The gas-to-shore project is critical to making this happen.”

While the current outlook for the project is positive, it still requires a lot of careful planning, with the operational and financial models yet to be finalised, explains the senior energy engineer, “This project Government may be considering a public private partnership type of arrangement but the ownership structure for the onshore infrastructure is still to be determined.”

The energy consultant explains the current state of affairs, “The main issues right now are around the contractual negotiations: primarily, what will be the price for the delivery? A Gas to Shore Project Advisory Committee has been set up to lead the process and 2023 is being touted as the timeline for delivery, which is optimistic in my view.”

 

 

Important Notice
While the information in this article has been prepared in good faith, no representation, warranty, assurance or undertaking (express or implied) is or will be made, and no responsibility or liability is or will be accepted by Deheza Limited or by its officers, employees or agents in relation to the adequacy, accuracy, completeness or reasonableness of this article, or of any other information (whether written or oral), notice or document supplied or otherwise made available in connection with this article. All and any such responsibility and liability is expressly disclaimed.
This article has been delivered to interested parties for information only. Deheza Limited gives no undertaking to provide the recipient with access to any additional information or to update this article or any additional information, or to correct any inaccuracies in it which may become apparent.

Most recent in Energy

Power Play

Mexico’s renewable energy race in the presidential arena.

Methanol Marvel

Sinaloa's sustainable industrial revolution in Mexico.

Green horizons

Chile's ENAP and global partners forge the path to hydrogen future. 

Suriname’s oil dream

Total's investment sparks economic transformation.

The green Chile

Chile’s hot renewable energy aspirations...

IBAMA said no!

Brazil’s environment agency stops Petrobras from drilling in the Foz do Amazonas basin.

Batteries not included

With a new operating model, Bolivia dumps the Germans in favour of the Chinese to exploit its lithium reserves.

Petro against petroleum

Petro plans to accelerate Colombia’s energy transition with ban on new exploration contracts.

Renewable leadership

Latin America is aiming for 70% renewable energy but how is it progressing?

Water harvesting

Saint Kitts and Nevis look for rainwater harvesting sites to improve access to water.