Jan 08, 2021 News
Kaieteur News – Even though Vice President, Dr. Bharrat Jagdeo, has disclosed to members of the media that the government has decided to land the gas-to-shore project at Wales, West Bank Demerara, the administration is still to release the relevant environmental studies, which support that choice.
It should be noted that previous studies, which were commissioned by the Coalition administration, did not list Wales as one of the most cost-effective options for the landing of the project which would bring gas from the Liza Phase One Project for 20 years.
In fact, the former regime had engaged consultancy group, Energy Narrative, in 2017, to undertake a desk study on the options, cost, economics, impacts, and key considerations of transporting and utilizing natural gas from offshore Guyana for electricity generation.
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 landing site location. It said that in shore compression and separation of the liquefied petroleum gas (LPG) is estimated to cost between US$43 million and US$114 million. Finally, distributing the natural gas to the various electricity generation locations is estimated to cost between US$95 million and $127 million depending once again, on the various proposed landing sites.
It was further noted that three sites were under discussion for the landing site of the proposed pipeline. With respect to the first option being Georgetown, the report said that this location was being considered because of the location of the Sophia substation (and the proposed New Sophia substation as noted in the 2016 GPL Expansion Study). The second option, which was Clonbrook, was being considered as it is located to the east of the main city along the Atlantic coast. It was being considered as an alternative to Georgetown, as it is less busy and potentially has more space for development. The location is estimated to be near the Columbia substation too. The third option was New Amsterdam, owing 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 the Canefield substation.
After doing its analysis of the costs, the Clonbrook landing site was considered as the most optimal landing site for the 30 million standard cubic feet per day (MMcfd) pipeline. The document said that this option would cost US$304 million, including US$165 for the offshore pipeline, US$43.5 million for a compression station and separation plant onshore, and US$95.4 million for onshore pipelines to bring natural gas to power stations in Vreed-en-Hoop, Kingston, Garden of Eden, and Canefield.
Based on the sites it reviewed, it was found that the Clonbrook landing site results in the lowest overall delivered cost of natural gas.
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