The gas-to-energy project, described by as a major cornerstone for the country’s economic development, remains on track for startup by the end of this year.
This was announced today by Finance Minister Dr Ashni Singh during his Budget 2024 presentation.
He revealed that this year, $80 billion has been budgeted to advance the project.
In Budget 2023, the gas-to-energy project received a $43.3 billion allocation. This allocation is in addition to the $24.6 billion injected into the start-up of the transformational project, which includes the construction of an integrated Natural Gas Liquid (NGL) plant and the 300-megawatt (MW) combined cycle power plant at Wales, WBD.
The NGL and 300 MW power plant components of the gas-to-shore project are meanwhile expected to cost US$759.8 million and will be financed through sources that include budgets and loan financing.
The scope of the project consists of the construction of 225 kilometres of pipeline from the Liza field in the Stabroek Block offshore Guyana, where Exxon and its partners are currently producing oil. It features approximately 200 kilometres of a subsea pipeline offshore that will run from Liza Destiny and Liza Unity floating production, storage and offloading (FPSO) vessels in the Stabroek Block to the shore.
Upon landing on the West Coast Demerara shore, the pipeline would continue for approximately 25 kilometres to the NGL plant at Wales, West Bank Demerara. The pipeline would be 12 inches wide, and is expected to transport per day some 50 million standard cubic feet (mscfpd) of dry gas to the NGL plant, but it can push as much as 120 mscfpd.
The pipeline’s route onshore would follow the same path as the fibre optic cables, and will terminate at Hermitage, part of the Wales Development Zone (WDZ) which will house the Gas-to-Shore Project.
A sum of US$55 million per annum will be paid to ExxonMobil in amortisation costs for the pipelines to be installed in the gas-to-energy project, which will allow Guyana to, in turn, save and earn ten times that amount.
Gas-to-Energy Project Head Winston Brassington had explained that the $55 million to be paid to ExxonMobil annually would allow the oil major to recover the US$1 billion spent on the pipelines.
Guyana has meanwhile been receiving assistance from international sources including Qatar, when it comes to the formulation of a plan to utilise and monetise the gas supply it will get when the gas-to-energy project comes online.
