Guyana’s Vice President, Dr. Bharrat Jagdeo recently revealed that the demand for excess gas from the country’s US$2B Gas-to-Energy initiative is already secured throughout the 20-year lifespan of the project. During a press conference last Thursday, he noted that the government has already received several Expressions of Interest (EoI) for the use of its excess gas, which is good news for Guyana.
“The 50 million cubic feet (per day) that comes in free from that (the project), the government will get all the natural gas liquids from that. But the pipeline has a capacity to bring in probably another 80 million cubic feet. So about 130 (in total). So, we already have a number of Expressions of Interest to utilize the additional gas,” he said.
According to Jagdeo, ExxonMobil will be delivering 50 million cubic feet of gas per day from the Liza field to a facility in Wales where it will separate the dry gas for power and the natural gas liquids (NGLs), adding that the excess gas can be used for various purposes, including making fertiliser, basalt fibre, and animal feed.
He was keen to note that Guyana plans to use all the dry gas produced in the country rather than exporting it. However, excess liquids, such as cooking gas or propane can be exported.
“So, we estimated that from our 50 million cubic feet we’ll have three times the national consumption of cooking gas. So we’ll export some of that. We’re hoping into Northern Brazil and across the Caribbean. People have approached us already but we haven’t decided,” he expounded.
Further, he disclosed that the proceeds from the sale of excess liquids will be used to repay the investments made by the Stabroek Block co-venturers on the pipeline that will transport the gas. The government and the co-venturers will also implement an agreement for the sale of the transported gas, which will see Guyana paying the co-venturers US$55 million annually for 20 years.
