Page 5 - GLNG Week 16 2022

GLNG COMMENTARY GLNG

to bring Firebird LNG to the final investment makes sense from the point of view that there is
decision (FID) stage quickly, in the hope of expe- a multi-trillion cubic foot gas resource located
diting construction. It stressed the urgency of the in an area with minimal local demand,” he
project, noting (in an apparent reference to the told NewsBase. “Given the uncertain outlook
Russian invasion of Ukraine) that world LNG regarding future gas supplies from Russia and
markets had recently been experiencing signif- the increased scrutiny on security of supply,
icant disruptions and implying that gas from there will be a market for LNG. But constructing
the Guyana-Suriname basin could help improve a large-scale, greenfield LNG plant always has
supply conditions. challenges.”
He continued: “There is no doubt that a sub-
Questions remain stantial gas resource exists in the Guyana-Suri-
In short, it seems like the outlines of PDC’s name basin, [with reserves of] at least 15 trillion
project have become clearer over the last two cubic feet [425bn cubic metres] and growing.
months. The company has stated that it wants to The domestic markets in Guyana and Suriname
receive gas offshore and then pipe it to shore for are small, demand for gas internationally is
liquefaction and local use within Suriname. growing strongly and this north-eastern cor-
But these are not the only questions sur- ner of South America is well located to supply
rounding the project. PDC has not specified Europe, as well as the rest of the continent. How-
where it hopes to find feedstock for its LNG ever, there is no infrastructure in the area, and
plant – and it has no guaranteed source, as Fire- the upstream developments are still at an early
bird LNG is not tied into any upstream projects. stage.”
Nor has it addressed the issue of whether Guy- Under these circumstances, Armijos told
ana is interested in participating in the project. NewsBase, Firebird LNG’s success is likely to
If Georgetown is reluctant to sign on, Firebird hinge on securing access to gas supplies. “Based
LNG could face problems, according to Andres on the proposal, a key objective will be achieving
Armijos, the head of Latin America research at commercial terms with the upstream companies
Welligence Energy Analytics. (principally TotalEnergies in Suriname and Exx-
Armijos stressed the fact that PDC was onMobil in Guyana) for the supply of gas,” he
planning to build exclusively in Suriname and said. “Anchor contracts will be needed to secure
pointed out that Guyana had not yet indicated financing for such a capital-intensive project.”
whether it was willing to send its gas across the He also expressed reservations about the
border for processing or consumption. If the prospects for bringing the proposed gas lique-
Guyanese side opts to pursue its own gas export faction plant online in the near future. “While
projects, it may not want to opt in to a cross-bor- it’s possible that development can be acceler-
der arrangement, even if there is a good business ated, projects of the scale suggested (4mn tpy)
case for Firebird LNG, he remarked. typically take six to seven years to bring online,
That said, he added, there are some argu- putting start-up towards the end of this decade,”
ments in favour of PDC’s plan. “The project he commented.™

Week 16 22•April•2022 www. NEWSBASE .com P5