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Natural gas-powered electricity generation feasible; East Demerara site identified for pipeline

 

ExxonMobil’s Stabroek Block concession offshore Guyana.

The use of natural gas for the state-owned Guyana Power and Light Inc. (GPL) to generate electricity has been found to be feasible and a site has already been identified to land a pipeline to bring the fuel ashore, Minister of Public Infrastructure, David Patterson said.

“It has been confirmed that it is feasible. It has been confirmed that it will be an absolute benefit to the country, has been confirmed-and I can say this and I will go out on a limb and say the numbers are all sub US 10 cents per megawatt hour,” he said.

Patterson said that now a location has been identified to land the natural gas pipeline, government would begin talks on the model to be used to competitively procure the power generation plants, enter into gas power sales agreement with GPL. “The main off-take of that natural gas in the initial stage will be for power generation,” he said.

“The question of the natural gas site, cabinet has pronounced on a site and which obviously triggers further technical studies which have commenced and are ongoing,” he told a cocktail reception to introduce newly-appointed GPL Chief Executive Officer, Albert Gordon. Patterson said government has been discussing with ExxonMobil taking the gas pipeline onshore Guyana to deliver the fuel.

A usually reliable ExxonMobil official was not immediately aware that a decision has been taken.

The gas pipeline is expected to come ashore at an East Coast Demerara village. Liza 1, the first well with commercially viable oil reserves was located more than 120 miles off Clonbrook-Mahaica.

Initially, ExxonMobil had said that commercial extraction of associated natural gas from its wells offshore Guyana would not be feasible and would be used to sustain the required pressure to extract oil and then pumped back into the reservoir.

ExxonMobil’s seventh oil discovery has since pushed up Guyana’s projected estimated daily oil production at 500,000 barrels.

https://demerarawaves.com/2018...tified-for-pipeline/

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Baseman posted:

That has to be expensive and high maintenance.  Amelia must be a better proposal.

Compared to that Billion dollar Amaila goadie that Jagdeo was trying to sell us, this will be a bargain. At less than 10 cents per KWH it will be cheaper compared to Amaila.

Amaila is grossly overpriced at 165MW for a billion dollars. 

Mars

Mars,

What company completed the feasibility study ?

This is what Exxon initially said:

"Initially, ExxonMobil had said that commercial extraction of associated natural gas from its wells offshore Guyana would not be feasible and would be used to sustain the required pressure to extract oil and then pumped back into the reservoir."

This is what Minister Patterson said:

“It has been confirmed that it is feasible. It has been confirmed that it will be an absolute benefit to the country, has been confirmed-and I can say this and I will go out on a limb and say the numbers are all sub US 10 cents per megawatt hour,” 

Everyone wants Guyanese to have cheaper electricity and this is not in any way a political question. I am just asking a valid question.

FM
Last edited by Former Member

Is this another pie in the sky proposal from the PNC?  One thing we know for sure.  They can only propose, they can't get anything done.  Every day there is blackout in Guyana. On Easter Monday at least half of the country was without power.  They brought a Jamaican to run GPL and he still staring at the stars!

Bibi Haniffa
yuji22 posted:

Mars,

What company completed the feasibility study ?

This is what Exxon initially said:

"Initially, ExxonMobil had said that commercial extraction of associated natural gas from its wells offshore Guyana would not be feasible and would be used to sustain the required pressure to extract oil and then pumped back into the reservoir."

This is what Minister Patterson said:

“It has been confirmed that it is feasible. It has been confirmed that it will be an absolute benefit to the country, has been confirmed-and I can say this and I will go out on a limb and say the numbers are all sub US 10 cents per megawatt hour,” 

Everyone wants Guyanese to have cheaper electricity and this is not in any way a political question. I am just asking a valid question.

I don't know which company did the feasibility study. We'll have to wait for the details from Patterson.

Mars

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