The Government of Guyana is moving ahead with plans to bring gas-to-shore from the Liza Phase One Project as four studies will be commissioned this year to ensure its financial and environmental soundness. During his press conference that is still ongoing at the Arthur Chung Convention Centre, Vice President, Dr. Bharrat Jagdeo also announced that a master plan will be developed to determine where the gas pipeline would be terminated at the Wales site along with where the industrial plant would be located.
Further to this, Jagdeo said that the government has done several internal assessments to determine the most suitable landing site for the pipeline. He recalled that the former administration had done a study which suggested that Greenfield, Mahaica was a possible site. He noted however that the coalition’s preferred site turned out to be privately owned. The Vice President expressed the belief that the gas project was deliberately stalled by the APNU+AFC back in 2016 to allow that private ownership to take place.
As for suggestions that the gas-to-shore project should be placed along the coast, Jagdeo said this would be disastrous, especially when one considers that several chemical storage plants along the coast are being developed to service the oil sector. Taking this into account, he said the decision was taken to ensure the pipeline was landed at a place where there was low population density and a lot of land hence Wales was chosen. He said too that this site was determined as less costly while adding that the government is now in the process of putting together a master plan.
The Vice President said, “We are in the process of mapping or creating a master plan for an area at Wales that would involve where the pipeline would be and what are the industries we would need around the area and depending on what kind of plant we use we might have to use steam coming out to support other industries. All of these things are being done now…”
Additionally, the official also sought to set the record straight that the government is not moving to have any pipeline constructed now or by year end. He said that the studies must be done first followed by a master plan while adding that construction is set to start in another year and a half.
The official said too that consideration is being given to determine whether a Wales Authority would be developed to manage the surrounding industries or whether those would fall under the central government’s control. The Vice President further noted that there would be rigid Environmental standards that have to be followed by the developing industries while adding that these would include measures for mitigating pollution.
As regards the costs of the gas to shore project, Jagdeo said it could cost Guyana US$500 to US$800 million depending on the size and design. Only when it goes to tender will the government really know. As for the powerplant, this could cost US$300M, the official said. He noted as well that this gas project could help Guyana realize an electricity rate of six cents per kilowatt hour along with a decline to three cents. Depending on the financial model used, whether the project would be fully government funded or a public private partnership arrangement, Jagdeo said it is a no brainer that there would be huge benefits for Guyana.
