The government will soon request proposals detailing how Guyana’s natural gas resources can be harnessed and monetised quickly, President Dr. Irfaan Ali announced Tuesday night.
Guyana started producing oil in 2019. That oil is harnessed from a giant, lucrative Stabroek Block offshore. Now, the Ali-led government wants to harness the natural gas resources also found in that offshore block to produce cheaper energy and other products.
To make this happen, the government in October released the Guyana Gas Monetisation Strategy for public consultations.
Included in that draft plan were monetisation options, including using the natural gas for power generation and to create other products such as methanol, liquified natural gas (LNG), ammonia/ urea and blue ammonia/ hydrogen.
Consultations are closed and the government has to now consider all feedback.
“We received all the comments (and) we are integrating the comments with the initial document,” President Ali said during an address broadcast live on his Facebook page.
The Guyanese Head of State also disclosed that the government will then seek proposals that will allow the natural gas resources to be used quickly.
“…In another week we expect to go out to ‘Request for Proposals’ to move towards implementing, or requesting models through which we can move as quickly as possible to monetise the total gas asset we have in our country,” President Ali said.
More on gas development in Guyana:
- Based on information shared in the draft gas monetisation plan, it is estimated that approximately 17 trillion cubic feet of recoverable gas resources, mainly associated gas and condensates, exist in the Stabroek Block.
- All the gas produced is being used for reinjection to maintain reservoir pressure except approximately 50 Million standard cubic feet per day of gas produced from the Liza field, which will be transported to shore and used to generate 300 megawatts of electrical power as part of the Gas to Energy project and other possible downstream initiatives.
- The Liza field is the area where Guyana’s oil production started. The Liza Field Development Plan (FDP) was revised, Vice President Dr. Bharrat Jagdeo announcedin April 2023, to facilitate the use of natural gas.
- The Gas-to-Energy project at Walesis where the natural gas produced offshore will be brought to. It will feature an integrated natural gas liquid plant and a 300-megawatt power plant. It is expected to come onstream in 2024. US-based integrated energy solutions group – LINDSAYCA – in partnership with a local firm – CH4 Group- is executing the engineering, procurement and construction of the project.
- The Ali-led administration says Guyana will achieve net zero by 2050 and it believes that natural gas is a much-needed transition fuelthat will help lower electricity costs in Guyana while helping the country move towards more renewable energy sources like solar energy and hydropower.
