(Argus, 2.Jun.2020) — Guyana is preparing to launch a tender for a natural gas-to-power project anchored on the ExxonMobil-operated Stabroek block.
The project would entail the installation of a 160km subsea gas pipeline from the deepwater block to onshore power generation units and other facilities.
Around 30mn-50mn cf/d would be delivered from the Liza project on Stabroek, enough to fire around 250MW of generating capacity, according to the government’s plans.
The project will allow Guyana’s state-run power utility GPL to convert its stations from heavy fuel oil and deliver electricity at lower production costs, the government says.
GPL is sparsely populated Guyana’s largest power generator with 120MW of installed capacity, compared with national demand of about 205MW. The remaining supply comes from independent power producers and cogenerators tied to mining, forestry and sugar production.
ExxonMobil is currently using gas from the Liza field to reinject into its oil wells and to power its floating production storage and offloading unit. Flaring accounts for the remaining 14mn-15mn cf/d, the country’s environmental agency EPA said.
“Start up for the Liza project involves temporary flaring to fully commission the gas compression an injection system,” the company’s Guyana office told Argus.
“We have successfully started up the gas handling system and begun gas injection into the reservoir.”
The gas-to-shore project plans “are far advanced,” energy department director Mark Bynoe said.
“We have a draft memorandum of understanding and a very cogent working group made up of critical players within the government,” he said. “We hope to engage the private sector as well so that they can understand what the opportunities are.”
By Canute James