ExxonMobil confirms pipeline ready to bring gas onshore following two-week shutdown

The natural gas pipeline, which will bring gas onshore from offshore Guyana, is ready to become operational and help fire the 300-megawatt (MW) power plant nearing completion at Wales.

This follows a two-week shutdown of production on two oil vessels in July and August, during which critical work was carried out to connect the pipeline to the Floating Production, Storage and Offloading (FPSO) units, Liza 1 and Liza 2.

During a press conference on Wednesday at ExxonMobil Guyana’s headquarters in Kingston, Georgetown, Alistair Routledge, President of ExxonMobil Guyana, provided an update what he termed a successful shutdown and a significant contribution towards progressing the gas-to-energy project.

Routledge explained that both FPSO units had to be taken offline for 12 days each to complete the necessary tie-ins of gas risers, which are essential for the transportation of gas through the pipeline.

“…risers have now been successfully connected to the pipeline, and we have been conducting several tests and de-watering exercises to ensure everything is functioning correctly,” he said.

The highly-anticipated project is expected to help lower electricity costs and reduce emissions in Guyana.

It will see a 200-kilometre pipeline bringing gas from the Liza Destiny and the Liza Unity fields onshore. Upon arrival at the West Coast Demerara facility, the pipeline will continue for approximately 25 kilometres to the Natural Gas Liquid (NGL) plant to be constructed in Wales.

ExxonMobil is now awaiting the completion of the plant, with Routledge expressing confidence that the laying of the pipeline, both in deep and shallow water, will be finished by the end of 2024.

He also assured, with the production numbers for the period of the shutdown already published, that no significant losses were recorded. He added that production during the shutdown was deferred rather than lost, meaning that revenue was unaffected.

“There was no loss in revenue, and no one lost employment or income during this time. In fact, we typically employ more people during this period,” he explained.

The company also used the downtime to conduct essential maintenance on the FPSO units, ensuring that both units were back online and operating at steady rates following the shutdown.

Already, the government has allocated a substantial US$400 million from its resources to advance the project.

The project is slated to be completed by 2025, with Vice President Dr. Bharrat Jagdeo assuring that the government will continue to support the project with finances from its coffers, despite some delays, while it awaits the finalisation of a loan agreement.