Instead of taking the contentious route of renegotiation, Guyana is banking on its Local Content Policy and the imminent Gas-to-Energy Project to claw back value lost via the lopsided Stabroek Block Production Sharing Agreement (PSA).
Vice President, Dr Bharrat Jagdeo recently made this point during an engagement with media operatives who questioned other avenues the government is considering to retain more benefits for citizens.
The former President said the government is sticking to its original two-pronged approach which was articulated since its time in opposition. He then championed the ideals and potential of the gas-to-energy project in particular as he noted that it will reduce Guyana’s carbon footprint, ensure cheaper electricity rates, and set the stage for 21st-century industrialization.
As regards negotiations on the project, he said the pipeline would be repaid over 20 years via cost oil while the government would fund the power plant and the Natural Gas Liquids (NGL) processing facility would go to tender.
Guyana Standard understands that 9 prequalified companies are expected to submit their proposals for the NGL facility by mid-July.
As previously reported, the gas-to-energy project will see the construction and operation of a pipeline from the Liza Phase 1 and Liza Phase 2 floating production, storage, and offloading (FPSO) vessels to an onshore natural gas liquids processing plant. The project also entails the construction of a 225 km 12” pipeline to transport the guaranteed minimum of 50 million cubic feet per day (mmcfd) of natural gas from offshore Guyana to the Wales Development Authority.
Ongoing geotechnical and geophysical works for both offshore and onshore operations are advancing with portions already completed. Construction of the pipeline is expected to start in the third quarter of 2022 and will be completed by the fourth quarter of 2024.
