Page 9 - LatAmOil Week 04 2022

LatAmOil GUYANA LatAmOil

Jagdeo did indicate, though, that the upcoming OilNOW.gy.
withdrawal from the NRF would allow Guyana He conceded that the deficit would not disap-
to reduce its borrowing this year. “The fiscal pear any time soon, saying it might even widen
deficit this year, in this budget, would be lower in the short term, since the government was
than the fiscal deficit in last year because from a spending more money on a number of major
financing perspective, that means we’d have to projects.
borrow less because some of the oil and gas reve- Even so, he said, the availability of oil reve-
nue will go to replace the high level of borrowing nues will limit the extent of this widening and
that we have had,” he was quoted as saying by reduce the need for borrowing. ™

Guyana receives 12 bids for power

plant, NGL facility under GTP project

GUYANA’S Department of Public Information phase of operation and 120 mmcf (3.4 mcm) per
reported last week that the Ministry of Natural day during its second phase of operation. The
Resources had received 12 bids for a contract latter facility must also be built with a 230-kV
covering the construction of both a natural gas- substation and back-up fuel capacity.
fired thermal power plant (TPP) and a natural Work on the combined construction project
gas liquids (NGL) plant. is scheduled to begin in the third quarter of 2022
In a statement, the department said that the and is due to be concluded during the fourth
Ministry of Natural Resources was considering quarter of 2024.
offers from a dozen international companies. According to previous reports, associated gas
The ministry has listed these companies as from oilfields at the Stabroek block will serve as
Amerapex (US), Apan Energy (UK), SEPCOIII feedstock for the TPP and NGL plant. Exxon-
Electric Power (China), CH4 Guyana Inc. (US), Mobil has said it will pipe gas from the fields to
China Energy International Guyana Co. Ltd, an onshore terminal that will then transfer it to
China Machinery Engineering Corp. (CMEC), the adjacent power station and other facilities.
Constutora Queiroz Galva (Brazil), Lyndsayca The total cost of building the pipeline, the
Inc. (US), National Gas Co. of Trinidad and terminal and the NGL plant is likely to reach
Tobago Ltd (NGC), Power China International $900mn. ™
Group, Tecnicas Reunidas (Spain) and Wison
Offshore and Marine Ltd (US).
Plans for the combined construction pro-
ject, which will launch the South American
state’s gas-to-energy programme, were drawn
up by Esso Exploration and Production Guy-
ana Ltd (EEPGL), the subsidiary of ExxonMo-
bil (US) that serves as operator of the Stabroek
offshore block. According to EEPGL’s findings,
combining the two facilities into a unified pro-
ject will ensure cost savings, thereby enabling a
higher number of bidders to pre-qualify for the
contract. As such, the government expects all
interested parties to submit new bids or resub-
mit previous bids that pertain to the combined
project in order to be considered.
As such, all potential contractors will need
to prove their ability to engineer and construct
both the TPP and the NGL facility in order to
pre-qualify for the work contract.
Guyana has stipulated that the natural gas
power plant is required to have a generating
capacity of at least 300 MW, with 250 MW of
the total to be directed to the Guyana Power
and Light grid in the area of the Demerara river.
The government also wants the NGL plant to be
capable of processing 60mn cubic feet (1.7mn
cubic metres) per day of NGL during its first Oilfields at Stabroek will provide gas for the GTP project (Image: ExxonMobil)

Week 04 27•January•2022 www. NEWSBASE .com P9