(Energy Analytics Institute, 2.Oct.2020) — A natural gas-to-power project is expected to start in 2021 to produce reliable electricity for Guyanese citizens, the country’s Natural Resources Minister Vickram Bharrat said 2 October 2020 during The Madrid Energy Virtual Conference.
The gas will come from the offshore Stabroek Block, which is operated by ExxonMobil and its partners Hess Corporation and China National Offshore Oil Corp. (CNOOC). To date, the companies’ operations on the block have included the successful drilling of 18 of 20 wells. Furthermore, the block currently contains more than 8 billion equivalent barrels of recoverable resources, according to Exxon.
The gas-to-power plant plans contemplates producing between 200 kilowatts and 250 kilowatts of energy, which should be sufficient for the country’s small population and industrialization, Bharrat said.
The government of new President Mohamed Irfaan Ali is also seeking ways to utilize gas to reduce mining cost as well as reduce CO2 emissions. Prior to starting oil and gas production operations offshore late last year, Guyana’s carbon emissions primarily came from the country’s mining sector due to the sector’s use of diesel.
The Guyanese government has already announced plans to apply fines and penalties for CO2 emissions and the wasting of gas, Bharrat said, adding that compensation for CO2 emissions would come through separate deals with companies.
Guyana, which is situated below sea level, is susceptible to rising water levels, and “the seawalls may be insufficient,” Bharrat said during a session with IPD Managing Director and founding partner David Voght and former Energy Minister for Trinidad and Tobago Kevin Ramnarine.
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Guyana, which initiated oil production in December 2019, is also looking at renewable projects from solar to hydro as well as pondering an eventual transition from fossil fuels in a move to reduce its carbon footprint.
An estimated 87% of Guyana’s landmass is covered by forest, the minister said.
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By Ian Silverman. © Energy Analytics Institute (EAI). All Rights Reserved.
