Page 10 - LatAmOil Week 35 2021

LatAmOil GUYANA LatAmOil

The pipeline will carry associated gas from the Liza-1 and -2 oilfields (Image: ExxonMobil)

Guyana reiterates interest in using

associated gas to make petrochemicals

GUYANA’S Natural Resources Minister Vick- the construction of a pipeline connecting the
ram Bharrat has reiterated Georgetown’s inter- Stabroek offshore block to an onshore process-
est in finding multiple ways to use associated gas ing facility near Wales. This 12-inch (304.8-mm)
from the Liza-1 and -2 oilfields at the offshore pipeline will transfer gas from the floating pro-
Stabroek block, which is operated by a subsidi- duction, storage and off-loading (FPSO) vessels
ary of ExxonMobil (US). installed at Liza-1 and -2 and pump it to the pro-
Bharrat noted last week that the Guyanese cessing plant.
government was primarily interested in using This processing plant will be able to process
the gas as fuel for domestic electricity genera- up to 50 mmcf per day of associated gas from the
tion. “The project would focus primarily on two oilfields. It will separate natural gas liquids
energy generation because that is our biggest (NGLs) out of the gas, isolating propane, butane
problem in Guyana,” he commented. “We need and pentane from dry gas that can be used to
cheaper, more reliable and cleaner energy, and generate electricity at a new 250-MW thermal
this project would solve that problem.” power plant (TPP).
He also stressed, though, that Georgetown Initially, the gas processing facility will be
was examining other commercial options for owned by Guyana’s government. Officials in
gas not designated for delivery to thermal power Georgetown have indicated that they are consid-
plants (TPPs). The pipeline that will be built to ering other ownership options for the future but
pump gas from Liza to shore will carry initial have not yet announced a decision on this front.
volumes of 50mn cubic feet (1.42mn cubic The plant will be built on a 40.5-square km
metres) per day, or enough to support 250 MW site on the west bank of the Demerara River and
of generation capacity, but it will eventually be is scheduled for completion in 2024, two years
expanded so that it can accommodate 120 mmcf after the Liza-2 field is due to begin production.
(3.4 mcm) per day of gas, he noted. The surplus (Liza-1 came online in late 2019.) The project is
volumes can be directed to petrochemical plants set to create about 600 jobs, most of which will
or other facilities, he explained. be temporary positions in the construction field.
“[Based] on what we are guaranteed now Guyanese officials have said they hope the
from ExxonMobil in terms of the amount of construction of the pipeline and gas-process-
gas coming in, there will be a few million [cubic ing plant will pave the way for a larger-scale gas
feet] that would remain, so we would have to project – namely, the establishment of an indus-
find ways in which we would utilise it ... We may trial hub similar to Point Lisas in Trinidad and
be in some small petrochemical industry, maybe Tobago.
fertiliser. We have not decided,” he was quoted as Point Lisas is home to multiple ammonia and
saying by the OilNOW.gy website. methanol production facilities, and Guyana’s
According to previous reports, In the docu- Vice-President Bharrat Jagdeo has said that his
ment, ExxonMobil Guyana has drawn up plans country wants to do something similar, though
for a gas-to-power (GTP) project that call for “a little bit more eco-friendly.” ™

P10 www. NEWSBASE .com Week 35 02•September•2021