ExxonMobil to build pipeline for landmark $1.3 billion Guyana gas-to-energy project

The initiative is expected to reduce the country’s dependence on foreign imports of diesel fuel for energy production26 April 2022 12:29 GMT UPDATED  26 April 2022 12:29 GMTBy Fabio Palmigiani   in    Rio de Janeiro 

US supermajor ExxonMobil has submitted environmental studies calling for the construction of a major offshore pipeline and associated infrastructure to turn into reality Guyana’s landmark gas-to-energy project.

ExxonMobil has pegged the massive enterprise, which will feature a 217-kilometer subsea pipeline at water depths of up to 1700 meters linking the Liza Destiny and Liza Unity floating production, storage and offloading vessels to shore, at approximately $1.3 billion.

The project will also include an onshore 25-kilometer pipeline section and a natural gas liquids (NGL) processing plant.VIDEO: Lifting of topsides modules underway for Guyana’s Prosperity FPSORead more

The proposed pipeline will be able to transport about 50 million cubic feet per day of natural gas from the Liza Destiny and Liza Unity FPSOs in the Liza field in the prolific Stabroek block to the NGL plant, where the dry gas will be treated and then sold to third parties.

“Given that the original design for each FPSO included provisions for gas export, the minor equipment upgrades in gas export equipment required on the two FPSOs to support the project are limited,” ExxonMobil said in the 1408-page document filed to Guyana’s environmental protection agency.

The Guyanese government is separately pursuing the construction of a nearby power plant that would use a portion of dry gas from the NGL facility to generate electricity, thus reducing the country’s dependence on foreign imports of diesel fuel for energy production.

According to ExxonMobil, the power plant will likely be owned and operated by Georgetown, although the government may also consider alternative options.

“ExxonMobil has not yet made a final investment decision on the project and is continuing to evaluate cost considerations during the project development process,” the company added.

“A higher certainty cost estimate will be developed after receiving and negotiating all major contracts.”ExxonMobil to develop nearly 1 billion barrels of oil with YellowtailRead more

Construction is due to begin after receiving all necessary authorizations — with a target date of August 2022 to commence site preparation of the NGL plant — and will take approximately three years.

The combined offshore and onshore pipeline system is expected to be operational by the end of 2024 and the NGL facility in mid-2025.

The project, which is expected to have a life cycle of at least 25 years, will employ up to 800 workers during the construction stage.

ExxonMobil also intends to improve infrastructure along the west bank of the Demerara river to facilitate access to the NGL plant.

The gas-to-energy project is expected to bring a series of benefits for Guyana, including reducing the cost of power by 50% while lowering carbon emissions significantly, thus facilitating the energy transition.

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