Fulcrum LNG has no contract for a gas monetisation project at this time – GS Jagdeo makes clear
General Secretary of the People’s Progressive Party (PPP), Dr Bharrat Jagdeo has made it clear, that the government has not entered into an agreement with Fulcrum LNG to develop its untapped gas resources offshore Guyana.
Dr Jagdeo was clarifying the issue in direct response to questions posed by certain sections of the media on Thursday.
Contrary to reports swirling in the public domain, the government has only initiated discussions with the United States-based company, to examine the viability of developing the gas project.
“There is no project at this point…There is the exploration of how we move to a project, to monetise the gas by looking at several options on the demand side, and the cost side,” he said.
“And then we believe that if you do get to a project stage, not all of this should come to cost oil…some of it can be privately financed, so that you have greater benefits flowing to Guyana,” he further stated.
According to Jagdeo, these technical deliberations and examinations will ensure the country can undertake this massive gas project
Following an extensive Request for Proposals (RFP) process, Fulcrum LNG was identified as the company, to work alongside the government, in finding the best way to develop Guyana’s untapped resources. The US company was selected from among 17 proposals submitted.
In a statement, the Ministry of Natural Resources said that the company’s submissions were very detailed and comprehensive, which ultimately justified the company’s ranking No 1.
The GS added, “They just have been ranked the overall number one to work with Exxon Mobil and the government of Guyana to develop a project, and we’re not even sure that will happen.”
The government has openly expressed the desire to develop the natural gas resources in the Stabroek Block, in keeping with its manifesto commitment of ensuring Guyanese earn more from the industry.
Already, a multi-billion Gas-to-Shore energy project is moving apace in Wales Region Three, promising a significant reduction in energy costs, upon completion.