Minister of Natural Resources Raphael Trotman on Monday, January 15, 2018, announced that the associated natural gas discovered offshore can be used to supply every coastal household with free cooking gas or at least, at a low cost.
He made the remarks during a press conference as he defended the Government’s decision to consider bringing the associated natural gas onshore.
“We could provide every household, certainly along the coast to start with, free cooking gas or at a price so cheap that you don’t have to go with your cylinders any longer,” Mr Trotman said.
The Government has received tremendous criticisms, particularly from the parliamentary opposition, for moving in this direction. But Trotman explained that the associated gas cannot be used for commercial purposes and therefore, it would serve the country well if the substance is utilized locally.
“We’ve been told that Exxon offered to flare the gas, burn it off because they want to get to the oil. We said ‘no’ because we are going green and we are not flaring anything in Guyana. So in quantity which is about 50 million cubic feet per day is available for us. To get into the gas business, you need trillions of cubic feet per day like in Trinidad,” he explained.
Trotman added that “the decision was made to bring it onshore, we could use it for energy generation and for cooking gas where we could give every household cooking gas.”
The Minister explained that the gas can also be used temporarily to generate electricity while the government transitions to renewable energy.
Minister Trotman also dismissed claims that Guyana made a bad deal with ExxonMobil, noting that every Guyanese can benefit from the revenues the country will be earning once oil production begins in 2020.
“This is the vision that we will continue to take to the people of Guyana. That you are going to be rich and that billions of US dollars are coming our way,” he emphasised.
ExxonMobil and its partners will commence oil production in two years.
The Government will earn a 2% royalty as well as 50% of the profits after the companies recover their expenses.
