Gas-to-Energy Project set to power economic growth, energy security
Guyana’s gas-to-energy project involves the development and utilisation of natural gas resources for domestic power generation as well as other industrial and commercial uses. The project is part of Guyana’s efforts to tap into its significant offshore natural gas reserves and maximise the benefits for the country and its people.
It is expected to provide a reliable and cost-effective source of energy for Guyana, reducing the country’s dependence on imported fuels and contributing to economic growth.
The energy project also has the potential to create new jobs and opportunities for the people of Guyana, particularly in the energy sector. Additionally, the use of natural gas for power generation is expected to help reduce Guyana’s carbon footprint, contributing to a cleaner environment and helping to mitigate the impacts of climate change.
Overall, the gas-to-energy project has the potential to bring significant benefits to the country and its people, helping to drive economic growth, improve energy security, and enhance the quality of life for the citizens of Guyana.
Partnership with ExxonMobil
For this transformational venture, the government has partnered with ExxonMobil, which has extensive experience in the exploration, production, and development of natural gas resources.
ExxonMobil is working with the government to develop the necessary infrastructure and facilities to transport and process the gas for use in power generation and other applications.
Government will finance the development of the plant while ExxonMobil will develop the pipeline, which is expected to carry an estimated cost of US$1.3 billion.
Already, the government has awarded a US$759 million contract to LINDSAYCA/CH4 for the construction of the integrated Natural Gas Liquids (NGL) Plant and the 300-megawatt (MW) combined-cycle gas turbine (CCGT) power plant located in Wales, West Bank Demerara.
The government has decided to construct the two plants together, as it was determined there will be substantial savings from combining the two facilities.
The partnership is expected to bring significant investment and expertise to the project, helping to ensure its success and the realisation of its full potential benefits for Guyana.
How does the gas-to-energy project work?
This will see a 300-megawatt (MW) power plant being constructed at the old Wales Sugar Estate on the West Bank Demerara (WBD), which will generate 250 megawatts (MW) of power to approximately 220,000 households that are connected to the grid.
A 200km pipeline will transport gas from the Liza Phase One and Liza Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels in the Stabroek Block to the Natural Gas power plant that is being constructed at Wales, West Bank Demerara.
The first step in the project is the extraction of natural gas from offshore fields using drilling and production facilities. The natural gas will then be processed to remove impurities and prepare it for transportation to shore.
The processed natural gas will be transported to shore through pipelines or other transportation systems, such as liquefied natural gas (LNG) tankers.
Natural gas will be used to generate electricity at onshore power plants. The electricity generated will be distributed to the national grid and used to power homes, businesses, and other consumers.
In addition to power generation, natural gas can also be used for other purposes, such as industrial and commercial applications, transportation, and as a feedstock for the production of chemicals and other products.
The sale of natural gas and the production of electricity will generate significant revenue for Guyana, contributing to the country’s economic growth and helping to support social and infrastructure development programmes.
Importantly, the project requires the investment of significant capital, as well as the development of specialised infrastructure and facilities, such as drilling and production platforms, pipelines, and power plants.
The project will also require the participation of a range of stakeholders, including government agencies, energy companies, and communities, to ensure its success.
Benefits to the people of Guyana
The gas-to-energy project has several potential benefits for the people of Guyana:
Economic Growth: The project is expected to generate significant revenue for the country through the sale of natural gas, which will help drive economic growth and create new jobs.
Energy Security: Guyana is currently dependent on imported fuels for its energy needs, but the Gas to Energy project will increase the country’s energy independence and reduce its dependence on imports.
Improved Electricity Access: The production of natural gas for power generation can help improve access to electricity for the people of Guyana, particularly in rural areas where access to electricity is limited.
Environmental Benefits: Natural gas is a cleaner source of energy compared to other fossil fuels, and the gas-to-energy project will help reduce Guyana’s carbon footprint and contribute to a cleaner environment.
Increased Foreign Investment: The project is expected to attract significant foreign investment in Guyana, which will help drive economic growth and create new opportunities for all Guyanese. Some $43.4 billion has been allocated in this year’s budget for the advancement of the gas-to-energy project.