The Wales Gas-to-Energy Project is well on track for completion by the government’s committed deadline of December 2024.
This was disclosed by Natural Resources Minister, Vickram Bharrat, M.P., in response to a notice paper.
In response to an inquiry concerning any agreements signed in relation to the project, Minister Bharrat, disclosed that a heads of agreement (HoA) has been signed with the Stabroek Co-venturers, ExxonMobil, Hess, and CNOOC Limited.
The tentative agreement was signed on June 30, 2022 and establishes the principles and conditions for the commercial and technical arrangements of the project.
The response reads, “There are other agreements on supply, buyer’s agreement, field development, licensing conditions, onshore works, and land matters that are currently being drafted.”
It said that these policy documents and agreements will be presented once they are finalised and executed.
According to the minister’s written response, “All agreements are being done in a timely manner to meet the Final Investment Decision which will allow for the project to be completed by our committed deadline of December 2024.”
The minister noted that the first Environmental permit for the Gas-to-Energy Project was approved and signed by all parties. The authorisation was granted to Esso Exploration and Production Guyana Limited (EEPGL), and allows for the transmission of natural gas onshore from the Liza field in the Stabroek block.
According to the Environmental Protection Agency (EPA), approval was granted based on the following grounds:
- The Environmental Assessment Board reviewed and declared the Environmental Impact Statement and Environmental Impact Assessment related to this project, acceptable in accordance with section 11(13) of the Environmental Protection Act, Cap. 20:05.
- The EPA is satisfied that the project can be conducted in accordance with good environmental practices, and in a manner that avoids, prevents and minimises any adverse effects which could result from the activity.
- The technical reviews and recommendations from a team of independent International Experts, the public inputs at the scoping stage, views expressed by members of the public during consultations, the submissions made after the EIA was submitted for public review, and all other relevant considerations, indicate that the project is environmentally-sound and in the public’s interest.
The project is expected to cut electricity cost by at least half, as well as promote a transition to cleaner, renewable energy sources. This is in keeping with the government’s commitment to significantly reduce the country’s reliance on fossil fuels.
The project is expected to have a life cycle of 25 years.