The Government of Qatar is expected to provide Guyana with two experts to assist with the development of a Gas Leak Management Plan. “This will be free of cost,” said Natural Resources Minister, Vickram Bharrat. He made this disclosure to the House on Tuesday.

Bharrat recalled that the assistance follows a visit by Qatari officials last year where high-level engagements were held on gas production and a number of other critical areas of interest. He alluded that the assistance on the document is expected to be significant in value, especially when one considers that Qatar holds the third largest gas reserves in the world. The Middle Eastern State is also lauded for the prudent management of these resources for more than 50 years.

Bharrat also disclosed that ExxonMobil Corporation’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) is also providing assistance with the document. In fact, EEPGL is standing the cost for the production of the report, the minister said.

Shadow Minister for the Petroleum Sector, David Patterson appeared uncomfortable with this state of affairs as he expressed reservations with Exxon’s role. He said a gas leak plan should be done exclusively by independent parties. Bharrat explained however that Exxon’s input is valuable to the process since it is the main developer of the oil and gas resources in the Stabroek Block. He said too that it brings the subsidiary in compliance with provisions outlined in the production licence for the Yellowtail Project.

Bharrat was also keen to note that the government will be utilizing various experts to review all plans submitted by Exxon.

Senior Finance Minister, Dr. Ashni Singh recently disclosed as well that government is already in receipt of a study from ExxonMobil Corporation affiliate, Esso Exploration and Production Guyana Limited (EEPGL) regarding the utilization of the nation’s gas resources which total over 17 trillion standard cubic feet.

This study was one of the requirements of the Petroleum Production Licence (PPL) awarded for ExxonMobil’s Yellowtail Project.
According to provisions of the PPL, the oil company is required to conduct a Gas Utilization Study which would examine the associated and non-associated gas available from all approved petroleum production licences (i.e: Liza 1, Liza 2, Payara and Yellowtail) as well as other discovered resources in the Stabroek Block.

This study is expected to consider over the short, medium and long-term, a forecast of potential gas production for export from existing oil ships and the expected use that gas will be put to.

The PPL notes that study shall also consider scenarios for the demand that might be expected for gas sales locally, in South America, regionally (the countries bordering Guyana) and internationally; as well as consider the cost and feasibility of gas export as Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG).

While Exxon’s study is being reviewed, Minister Singh has said that government has also commenced work on the revision of the Liza Field Development Plan and Licence which will allow for the production of natural gas for commercial usage in Guyana. He reminded that the country is expected to export, at a minimum, about 50 million standard cubic feet of gas per day through Liza Destiny and Unity ships, in the initial phase.

The gas-to-energy project will see a power plant being constructed to generate 250 megawatts (MW) of power and a Natural Gas Liquids (NGL) plant to cover Guyana’s domestic demand for other natural gas products.


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