The Energy Department is conducting a ‘gas to power’ feasibility analysis which will determine where to land the gas pipeline for the transportation of gas onshore for domestic use.
This is according to Director of the Department, Dr Mark Bynoe.
Following the discovery of oil and gas offshore, the Government commenced discussions on the possible landing of pipelines onshore for the conversion of the natural gas for energy use.
In 2017, it invested US$70,000 into a consultancy firm which examined utilizing natural gas for electricity generation in the context of Guyana.
Dr Bynoe told a news conference on Thursday that this study will build on what was done as it will now look at the possible areas for the landing of gas pipelines and options for future planning.
He said that the study will look at a framework that will promote development.
“It is not just a case of bringing to shore gas, it is the contingency plan around that and the supporting infrastructure that we need to put in place as we go forward,” Dr Bynoe pointed out.
Prior to the Department’s formation in August, the Ministry of Public Infrastructure had disclosed that the Government was in negotiations with ExxonMobil for natural gas to come onshore by 2022.
The US oil giant had confirmed that there is sufficient natural gas in the reserves to supply some 200-megawatt electricity plant.
Dr Bynoe disclosed that his Department, which has taken over all matters relating to Oil and Gas, is working with ExxonMobil which has in the past expressed an interest in the project but there are other things to be done first.
“We need to have a better understanding in terms of volume. Also, we have to have a better understanding of future planning for any landing of said pipeline,” he told the press.
In fact, ExxonMobil is currently conducting a LIDAR study of Region Four –a study used to prepare high-resolution maps for a specific area using laser lights.
The Energy Director said information which will be derived from the study will be helpful to the Department in making an informed decision on the natural gas project.
The Department is working to increase its capacity and better understand policies and trends relating to the petroleum sector. It is expected to evolve into a Ministry in the coming years.