Apr 28, 2021 News
Kaieteur News – The Guyana Government is forging ahead with plans to install some 300 megawatts (MW) of electricity using Natural Gas from the Stabroek Block, but a design is yet to be decided on. Further, the administration is also unsure as to whether it would even be building a single plant or several modular facilities.
The revelation was had on Monday last, when Vice President, Dr. Bharrat Jagdeo, led a press engagement at the Arthur Chung Convention Centre (ACCC) and it was disclosed that the power generation aspect of the gas-to-shore project might even be proceeded with ahead of the gas pipe from the producing field offshore Guyana.
Dr. Jagdeo told those in attendance–including publishers and editors of local media houses–”we may be able to, in a modular form, advance the building of the power plant.”
According to the Vice President, the administration is examining, “if we are going to put in a 300 megawatts power plant, the configuration of the 300 megawatts, [or] whether it would be small units.”
He said, these details are still to be decided on by the “technical people” but posited, “We believe that if we settled everything we are examining now, we can do 150 megawatts and supply it from through the gas that we bring in now, [even] before the pipeline comes on stream.”
This he said is given the urgent need for power even now.
He suggested that by the time the pipeline terminates at the Wales Estate, “We will then build the second 150 megawatts.” He reiterated, “That’s being examined now.”
The Vice President did caution however that this approach would be dependent on the finalised location for the pipe.
He explained, saying, this would be obtained when “the pipeline guys will come and say, here is where the power plant will terminate.”
Dr. Jagdeo used the occasion to also speculate, should the hurdle be surmounted, that ”once you settle that, the Government, we, have to now invest in the road to the site and to build a facility.”
He in fact suggested this as the reason the Administration has already started looking into aspects of the riverbed and banks, “to look at where you would have to build a wharf there to land the big pieces of equipment, the power plants and all of these things, heavy duty roads to take you up to the site.”
The Vice President was adamant, “all of this work has to be done.”
He speculated too, “it’s a lot of different projects but all connected to the power plant,” and that at a later stage the Administration would be looking into, “whether the Government would fully own, say the urea plant or it will go out to tender, or something else.”
According to Jagdeo, at present, “there is no commitment to that as yet; we are just seeing, examining the details; we are working on the details to get this one project, the power plant, off and running.”
As it relates to the additional gases to be had from the associated gases coming from the Stabroek Block, Dr. Jagdeo noted that at present there is no definitive plan for its use.
He was at the time responding to queries over the overall returns from the gas resources and not just the US$150M savings, said to be had, whenever the power plant is fired up. According to Jagdeo, “we haven’t monetised the natural gas linkage as yet.”
He conceded however, that the administration will not be making any surplus or profits on the pipeline of itself.
“I doubt they’re going to make any money on the pipeline and the gas at three and a half (US) cents,” he disclosed.
The Vice President posited, “Where the project will make some money, is in the sale of the natural linkage, the LPG (liquefied propane gas [cooking gas]) and the other things that are there.”
He told stakeholders gathered at ACCC, “We haven’t worked out the framework and monetised that as yet, because we’re focusing wholly on the studies and the project parameters at this time.”
According to Jagdeo, “once we’ve monetised those, you would see how much (gas) would be available.”
Citing hypothetical examples of prices for cooking gas and other “by-products that would give you a revenue figure,” Dr. Jagdeo reminded however, “we haven’t gone there as yet.”
According to the Vice President, “once we settle that this is a big gas project and bringing gas-to-energy is a feasible option, everything else is a bonus.”
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