Page 4 - LatAmOil Week 31 2022

LatAmOil COMMENTARY LatAmOil

Rendering of GTE pipeline route (ExxonMobil)
Progress report: Guyana’s

Gas-to-Energy project

EEPGL has recently awarded two “substantial” contracts related to the pipeline component of

the project, and Guyana’s government has issued two RFPs for project management services

THE government of Guyana has said it wants to subsidiary of ExxonMobil (US) that operates the
make a final investment decision (FID) on the Stabroek block, on engineering, installation and
WHAT: Gas-to-Energy (GTE) project, which calls for project management services for the pipeline.
Georgetown is hoping to using associated gas from several of the oilfields The contract covers services for approximately
make an FID on the GTE at the offshore Stabroek block as feedstock for 190 km of pipe, including a deepwater portion
project by year-end. electricity production, by the end of this year. It in waters up to 1,450 metres deep and a shal-
appears to be on track to meet this deadline and low-water portion and onshore section that will
WHY: is making progress on the project. make landfall on Guyana’s coast to the west of
EEPGL’s contract awards This essay will describe two of the contracts the Demerara River, it said.
indicate that work on recently awarded for work on the GTE projects, The statement did not reveal the exact value
the pipeline is mov- along with one more milestone that will have to of the contract. But Subsea 7 did define the pro-
ing forward, and the be met over the next few months, prior to FID. ject as “substantial.” That is, it said its own share
government is seeking
assistance with project of the contract was worth $150-300mn.
management. EPCI services Craig Broussard, vice president of Subsea
The first of the contracts in question went to 7 US, commented: “We are honoured to have
WHAT NEXT: Subsea 7 (Luxembourg) and Van Oord (Neth- been selected for Guyana Gas-to-Energy. This
The parties are likely to erlands), and it concerns the pipeline that will is an important project to support the Guyanese
meet their self-imposed pump gas from Stabroek to an onshore facility. people, and we look forward to continuing our
deadline for FID. On July 27, the companies said in a statement relationship with EEPGL in one of the most
that they had struck a deal with Esso Explora- prolific and exciting development basins in the
tion & Production Guyana Ltd (EEPGL), the world.”

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