Page 5 - LatAmOil Week 13 2022

LatAmOil COMMENTARY LatAmOil

Reducing emissions environmentalists still criticise the scheme for
In a recent interview with a Guyanese radio sta- its reliance on fossil fuels, natural gas offers
tion, Arthur Deakin, the co-director of energy Guyana an affordable way to begin the process
research at Americas Market Intelligence of reducing emissions, Vice President Bharrat
(AMI), remarked that the GTP project might be Jagdeo has commented. This gives the country a
able to succeed on both economic and environ- way to move toward the energy transition, even
mental fronts. as it develops its own resources and continues
With respect to carbon emissions, he to plan other renewable transition projects, the
explained, the outcome of the initiative will vice president has said.
depend on the use of appropriate technologies, But there are important differences. Guy-
many of which have yet to be widely imple- ana’s Environmental Protection Agency (EPA)
mented. Meanwhile, with respect to resiliency, of Guyana has released a project summary stat-
he said, the project makes a great deal of sense. ing that the projected lifespan of the GTP project
From an economic standpoint, he explained, is likely to be 25 years. By contrast, the govern-
GTP will benefit Guyana, as transporting gas ment’s plan for expanding hydropower capac- The GTP project
from the offshore zone to the shore will enable ity through the construction of a hydroelectric
the country to lower the cost of electricity. The power plant (HPP) at the Amaila Falls envisions could bolster
project will also provide Guyana with more sta- the construction of a facility lasting 100 years. Guyana’s energy
ble and affordable energy than traditional power
plants, which burn petroleum products for fuel, Energy security security by
he said. Deakin reiterated some of these points earlier
Deakin was speaking shortly after Dr. Lor- this week during a webinar sponsored by Oil- ensuring its
raine Sobers, a reservoir engineer and lecturer NOW.gy.
at the University of the West Indies, told Oil- The AMI researcher noted that the GTP pro- access to fuel
NOW.gy during a webinar that she viewed this ject was likely to have significant economic ben-
landmark project as a major opportunity for efits for Guyana, as it might result in domestic
clean energy transition. Guyana could use the electricity tariffs dropping by more than 50%.
GTP scheme to minimise emissions even as it He also stressed, though, that the scheme would
expands oil production, so long as it utilises the bolster the country’s energy security by ensure
right kinds of technology, such as carbon cap- its access to a nearby source of fuel. “In terms
ture and storage (CCS) solutions, she said. of energy security around the world, it is more
In line with researchers’ recommendations, important than ever to have this gas-to-shore
Guyana’s government is expected to approve plant come online as quickly, as safely as possi-
the use of technologies such as CCS solutions ble,” he stated.
at Stabroek. ExxonMobil, the operator of the Deakin also said he believed the estimated
block, has already green-lighted the use of CCS cost of the project was fair. He stressed that he
technologies in its local operations. had not studied projects of this type in detail
before, but he said the budget did not seem over-
Transition issues blown in light of the benefits the deal was likely
Meanwhile, from an environmental standpoint, to bring to Guyana.
the government of Guyana has estimated that Under the current circumstances, he added,
the GTP project may reduce emissions result- the South American country would do well to
ing from power generation by 50%. (The South move forward with the GTP scheme as quickly
American state is currently dependent on TPPs as possible. Using associated gas to generate
that burn petroleum products for electricity power may be Guyana’s best option for making
production.) the most of current market conditions while also
As such, even though numerous working toward its long-term goals. ™

(Image: ExxonMobil)

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