Among the projects the Government is currently considering for Wales on the West Coast of Demerara (WBD), where the onshore gas project is likely to land, are the Liquefied Petroleum Gas (LPG) plant and will have the potential to provide for the energy needs of the people.
This was revealed by President Dr Irfaan Ali during a recent interview with US broadcaster Farook Juman. According to Ali, the Government is not only considering an LPG plant as a side effect for the onshore gas project, but also a protein plant.
LPG is a derivative of crude petroleum. Colorless and odorless but classified as a liquid, it is a popular gas for consumer needs such as cookware and heating. President Ali described these initiatives as part of the development campaign.
“Region Three, you will see a huge investment on the seafront in the Demerara River which will create huge opportunities and the effect of dripping down. You will see agro-processing facilities being developed. You will see more use of the Essequibo River, ”said President Ali.
“The gas pipeline landed in Region Three for Wales onshore, which will have major industrial development taking place there linked to not only power generation and power plants, but we are looking at the possibility of a new plant. protein. We are looking at LPG. ”
According to the Head of State, this is how urbanization and regionalization occur. And he explained that this rapid development will be supported by the Government’s housing program.
“All these will come from (industries). Can you understand the huge transformation that will take place in that region, which will also create a population boost, ”asked President Ali.
Shortly after the Government issued license licenses to Exxon for the Payara Development Project last year, Vice President Bharrat Jagdeo had announced that the Government would turn its attention to discussing the gas-to-energy project.
He had pointed out that Guyana was producing at nearly 17 to 20 cents per kilowatt / hour. As such, he noted that the project could cut the cost of electricity in the country by more than half. To this end, it had announced that a team had been set up to begin negotiations on the gas-to-energy project, with the Government looking forward to 2023 to bring the project to fruition.
And in fact, a Gas to the Beach Project Advisory Committee headed by former head of National Industrial and Commercial Investments Limited (NICIL) Winston Brassington was set up shortly thereafter to look at different locations for the onshore gas project.
A number of factors, including geotechnical, geophysical and environmental factors, were examined before Vice President Jagdeo recently announced that the Government had settled on Wales to land the pipelines for the project.
Meanwhile, Prime Minister Mark Phillips, who has responsibility for the energy sector, has previously said that the Government is looking to generate 200 megawatts of power from the onshore gas project by 2024.
Exxon has said that the onshore gas project would require approximately 30 to 35 million cubic feet of natural gas. Data released recently by Norwegian research firm Rystad Energy indicated that less than 20 per cent of the 1.8 billion barrels of oil equivalent (BOE) discovered last year were gas.
A Haimara discovery made by Exxon in 2019 was found to have 207 feet of high quality gas condensation sandstone reservoirs. Several experts have already championed the merits of bringing gas to shore, including US energy consultant Edwin Callender.
At an energy forum in June 2019, Callender had indicated that natural gas energy production could help modernize the country in a country like Guyana where power outages were a significant problem.
Robert McNally, another energy expert and President of Washington-based Rapidan Energy Group, has also endorsed the Government’s drive to bring gas to shore. During a visit to Guyana last year, McNally told the media that that natural gas would replace the Heavy Fuel Oil (HFO) currently used by the Guyana Power and Light (GPL) to generate power.
According to McNally, this can offer the country an abundant, reliable and cleaner source of power. McNally pointed out that after studying the oil market, Guyana would also be able to cut its electricity expenses as a “godsend” for the country.