Area to land natural gas pipeline to be identified next year

Areas in Regions Three, Four and Six are being considered as possible sites to land a pipeline for the transfer of natural gas from the oil reservoirs offshore.

Public Infrastructure Minister, David Patterson announced at his Ministry’s end of the year press conference on Thursday morning that the ideal site will be selected sometime in the early part of the new year.

Minister Patterson explained that discussions are ongoing with ExxonMobil, the Environmental Protection Agency (EPA), the Guyana Energy Agency (GEA), the Guyana Lands and Surveys Commission (GL&SC), among other agencies to ensure the best possible location is identified.

He said some factors that will be taken into consideration are the availability of land, the impact of the project on residents and environmental concerns.

The Minister disclosed that the Government has approached the Inter-American Development Bank (IDB) to conduct a study in relation to this project while a study is already being conducted by the Government of Japan.

Minister Patterson said he hopes to make these documents available to the public in the first quarter of 2018.

He explained that the initiative is bigger than the development of a pipeline to transfer natural gas, noting that the government is looking at how it can establish an industrial park and a LPG (Liquid petroleum gas) plant.

LPG is used as a fuel for many residential, commercial and agricultural heat applications, including cooking, hot water systems and heating. It is also employed as a propellant, refrigerant, and vehicle fuel.

Once the location is determined, the government will move ahead with the technical studies related to the project.

The government has an interest in bringing natural gas from the oil reservoirs offshore via pipelines for cheaper power generation.

The usage of the natural gas could result in lower costs for the Guyana Power and Light Inc. (GPL) and ultimately cheaper energy for consumers.

ExxonMobil’s Senior Director of Public and Government Affairs, Kimberly Brasington had told News Room that the Company is willing to embark on the project.

Brasington had explained that while ExxonMobil is committed to making the idea a reality, the supermajor is taking its cue from the government.