ExxonMobil has few options for Liza One natural gas
… Only so much can be re-injected, the power of FPSO – T&T Specialist
Kaieteur News – Former Energy Minister in neighboring Trinidad and Tobago (T&T), Kevin Ramnarine, thinks Major ExxonMobil, US oil, has very few options as to what to do with the associated natural gas n originating from the Liza Phase One oil field in Stabroek Block, offshore Guyana.
These, he said, include re-injecting the gases back into the reservoir, flaring it up, or commercializing it.
Ramnarine was then discussing Guyana’s planned landing of a gas pipeline from Cae Liza some 126 miles offshore Guyana at a depth of about 1,600 meters, to the former Welsh Estate on the west bank of Demerara.
The former T&T Minister with some 25 years’ experience in the natural gas business told webinar participants hosted by Oil Now TV on the subject last Monday that “Exxon has very few options for offshore natural gas. ”
He explained that “option one is to re-inject but you can only re-inject as much as we have discovered.”
According to Ramnarine, a second option would be to use for power generation – as is currently the case – on Liza Destiny’s Float Production, Storage and Unloading Boats (FPSO), “but there is only so much we could use for that. ”
He speculated that the third option “is to commercialize and somewhere in between if things go wrong, as they recently went wrong, with the compressor on the Liza Destiny, the only option is to either shut off oil production or flame properly. ”
Ramnarine claims, “nobody wants to shut down oil production and nobody wants to flash.”
He noted that in this context, “as the decade progresses, I think more gas will make its way to the coastline.”
As such, Ramnarine said, “the question arises; how best to develop industries that are sustainable and could create jobs and so on. ”
Regarding Guyana taking the gas from the Stabroek Block, Ramnarine noted that there is scope for small-scale commercialization of liquefied natural gas (LNG) in Guyana but to undertake a trade of the same size in Guyana, “you would have to having reserves. how much let’s say four to five trillion cubic feet of gas … You would need to tie up quite a lot of gas and you would have to have the supply there for 20 years to justify the LNG train, ” he said He said.
He was adamant however that there was room for growth using LNG as gas as an energy source will be a “growth industry for a long time.”
As such, he suggested that in relation to natural gas, “one of the things that the Guyanese government might want to do, is to have an independent third party assessment of the reserves that have been discovered so far.”
He stated, “at the moment, we have some figures, and those figures have been given to us by Exxon, out of their reports. We have Exxon Securities and Exchange reports that are publicly available, but it would be helpful for the Guyanese government to have an independent third party assessment. ”
Referring to natural gas and its use in neighboring T&T, the former Energy Minister pointed out that “our annual natural gas inspections are actively followed by the public in Trinidad and people in Trinidad always worrying about gas running out etc … So I think an audit like that will give the Guyanese government a good idea of what kind of resource base you’re playing with and then that will inform industrial strategy, and planning industrial moving forward. “
Ramnarine revealed in a recent project discussion that the pipeline alone will cost the country about US $ 800M but “the most important facility would be the facility of gas conditioning or gas fractionation.”
This essentially refers to a refinery-like facility to separate the associated gases that would land on the ground – a fraction of which would be used to supply Guyana with an oversupply of electricity.
Ramnarine, during the gas-to-shore debate held by OilNOW’s Chris Chapwanya, said that before the project was taken forward, Guyana’s government needed to decide, “how best to develop sustainable and sustainable industries which could create jobs and so on. ”
The associated gas was to be landed on the ground in Guyana by 2024 initially at around 15 million cubic feet of gas per day.
According to Ramnarine, it must be realized that a facility to separate the methane, “ethane and propane etc” will have to be established; a power station would probably need methane, which is the simplest of hydrocarbons. So the powerhouse gets what they call C1 and C2, namely methane and ethane. ”
He explained that “everything else, C3 +” which is essentially butane is also used as a driver.
He also spoke about the need to consider propane commonly referred to as Liquefied Petroleum Gas.
Other gases that would be separated and separated – in a conditioning facility that will have to be built before anything can be done with any of the gases – include “pentane and hexan etc.”
He asked that these are also valuable liquids. “That has value in terms of supplying cooking gas to Guyana (one) and supplying cooking gas to Guyana at a lower cost than it is currently supplied because you would be importing your current cooking gas from somewhere. ”
Ramnarine referred to liquefied gas for mining and companies such as Demerara Distillers Limited, which already imports small quantities of LNG.