EPA gives ‘no-objection’ for ExxonMobil to start preparatory works for Gas-to-Energy project

Apr 23, 2022 News

Kaieteur News – Ahead of approving its US1.3 billion Gas-to-Energy pipeline project, the Environmental Protection Agency (EPA) has given Esso Exploration and Production Guyana Limited (EEPGL), the subsidiary of ExxonMobil, its blessings to commence preparatory works for the project that remains under scrutiny.

A diagram depicting how the gas will be brought to shore from the two Liza Destiny and Liza Unity FPSOs

On Wednesday, the Environmental Impact Assessment (EIA) for Exxon’s part of the project was submitted to the EPA. The document explains that separate from the project’s Environmental Authorization, the agency has issued a no-objection letter, authorizing “selected early works activities that will support the proposed construction activities for the Project.”
The approved early works, according to the EIA, relate primarily to the upgrading, rehabilitation, and repair of approximately six bridges, and some 11 kilometers of roads along the West Bank of Demerara (WBD) Public Road from the village of Patentia south toward the Natural Gas Liquid (NGL) Plant site. These works will allow for improved access to the site, the EEPGL’s Consultant, the Environmental Resources Management (ERM) outlined.
In addition, “the early works activities will also include the establishment of an approximately 5-hectare laydown area to stockpile aggregate, which is needed for the early works road improvements”.
ERM was keen to note that all the road and bridge improvements are expected to remain within the existing road’s right of way (RoW) and that the preparatory works will include maintenance of existing facilities.
The oil company boasted that in addition to supporting its project-related activities, the improvements to the infrastructure is expected to benefit residents with improved vehicular access and enhanced safety in the area, who currently only have dry-season vehicular access in some areas because of poor existing road conditions.
Exxon’s environmental impact study has pegged the Wales, West Bank Demerara project in excess of US$1.3 billion. The company will be funding the installation of the offshore and onshore pipelines, while the government would be responsible for the NGL plant.
EEPGL said the project will involve capturing associated gas produced from crude oil production operations on the Liza Phase 1 (Destiny) and Liza Phase 2 (Unity) Floating, Production, Storage, and Offloading (FPSO) vessels, transporting approximately 50 million standard cubic feet per day of rich gas via a subsea pipeline and then to an onshore pipeline to a natural gas liquids (NGL) processing plant (NGL Plant), treating the gas to remove NGLs (i.e., propane, butane, and pentanes+) for sale to third parties, and ultimately delivering dry gas meeting government specifications for use at the power plant.
Construction is expected to begin as soon as possible after the oil company receives all necessary authorizations with a target date of August 2022 for start of NGL Plant site preparation, and will take approximately three years. The combined offshore and onshore pipeline system is targeted to be ready to deliver rich gas by end of 2024, and the NGL Plant is targeted to be operational by mid-2025.
Kaieteur News understands that the EIA was prepared by ERM, in association with the Guyanese consultancies E&A Consultants, Inc. (E&A), Caribbean Engineering & Management Consultants Inc. (CEMCO), the University of Guyana Centre for the Study of Biological Diversity (CSBD), and Leon Moore Nature Experience (LMNE); Trinidadian consultant Caribbean Transportation Consultancy Services Company Limited (CARITRANS); and U.S.-based consultant SLR International Corporation (SLR).