Gov’t may execute both natural gas & power plants at Wales – Exxon official

The Government of Guyana is in discussion with ExxonMobil’s local affiliate on potentially executing and operating both the natural gas liquids (NGL) plant and the nearby power plant that will use the natural gas to generate electricity at Wales, West Bank Demerara (WBD).

This is according to ExxonMobil’s Project Manager for the gas to energy project, Friedrich Krispin, who spoke at a public disclosure meeting at the Umana Yana on Wednesday.

“Subsequent discussions with the government, that have not been solidified, lead us to believe that we may split it differently.

“EEPGL may execute the pipeline and operate the pipeline and potentially, the government will execute the NGL [plant] and the power plant together and operate those,” Krispin said.

He emphasised, however, that the government and the company are yet to finalise how the project will be split.

It is understood, however, that the Guyana Power and Light (GPL) will manage the gas-fired power plant that should produce 300 megawatts of electricity, or about twice the amount of Guyana’s current production.

Both plants, in addition to an approximately 250 kilometres (KM) subsurface pipeline that runs from the Stabroek Block offshore Guyana, form the Wales gas-to-energy project.

An Environmental Impact Assessment (EIA) has been completed following Esso Exploration and Production Guyana Limited’s (EEPGL) request for environmental authorisation from Guyana’s Environmental Protection Agency (EPA).

EEPGL is ExxonMobil’s local affiliate. The EIA considered the impact of the NGL plant and pipeline specifically, though a cumulative impact assessment includes some consideration for the nearby power plant.

Importantly, though, the Ministry of Natural Resources notified the public in December 2021 that the NGL plant and the gas-fired power plant would be built together at Wales.

Based on information provided by Krispin, the NGL plant is expected to process the natural gas produced offshore to remove other substances (including propane, butane and pentane liquids) for sale to third-party users.

The remaining dry gas would be treated for use as fuel to support the third-party power plant.

If approved, construction of the large infrastructure would take approximately three years, with the pipeline component set for a 2024 year end completion date. ExxonMobil estimates that the project would last at least 25 years.

To support the development of the NGL plant, Exxon expects to build a new offloading facility and heavy haul road near the western bank of the Demerara River.