PPP / C yet to unveil studies to justify landing gas project in Wales
Vice President, Dr. Bharrat Jagdeo
Kaieteur News – While the Vice President, Dr. Bharrat Jagdeo, having revealed to members of the media that the government has decided to land the gas-fired project in Wales, Westmeath Demerara, the administration is still releasing the relevant study environment, which support that choice.
It should be noted that previous studies, commissioned by the Coalition administration, did not list Wales as one of the most cost-effective options for landing the project that would bring gas from the Liza Phase One Project for 20 years.
In fact, the previous regime had engaged with the advisory group, Energy Narrative, in 2017, to conduct a desk study on the options, cost, economics, impacts, and key considerations of transporting and using natural gas from Guyana by sea for production electricity.
According to the report, an offshore pipeline is estimated to cost between US $ 165 million and US $ 270 million to build, depending on the size and location of the landing site. He said the cost of compressing the shore and separating the liquefied petroleum gas (LPG) is estimated to cost between US $ 43 million and US $ 114 million. Finally, the distribution of natural gas to the various electricity generating locations is estimated to cost between US $ 95 million and $ 127 million depending again, on the various proposed landing sites.
It was further noted that three sites were being discussed for the proposed pipeline landing site. With regard to the first option being Georgetown, the report stated that this location was being considered due to the location of the Sophia substation (and the proposed New Sophia substation as identified in the 2016 GPL Expansion Study). The second option, Clonbrook, was being considered as it was east of the main city along the Atlantic coast. It was being considered as an alternative to Georgetown, as it is less busy and has more room for development. The location is also estimated to be near the Columbia substation. The third option was New Amsterdam, due to its location along the Berbice River and the potential to develop a new industrial site and deep water port to support new energy-intensive industries. Its location is estimated to be near Canefield substation.
Following its cost analysis, the Clonbrook landing site was considered the most optimal landing site for the standard 30 million cubic feet per day (MMcfd) pipeline. The document said this option would cost US $ 304 million, including US $ 165 for the offshore pipeline, US $ 43.5 million for an onshore compressor and separation plant, and US $ 95.4 million for pipelines onshore to bring natural gas to power stations at Vreed-en -Hoop, Kingston, Garden of Eden, and Canefield.
Based on the sites it reviewed, it was found that the Clonbrook landing site resulted in the lowest overall cost of natural gas.