Advocat Guyana Holdings Inc (AGHI) is gearing up to establish a US multi-million dollar chemical warehouse and laydown yard facility on the East Bank of Demerara (EBD). The company in its project summary submitted to the Environmental Protection Agency (EPA) noted that the facility is to be situated on a sprawling 9.825-acre tract of land at Lot “a” of Tract “Y,” Land of Canaan, EBD. It is set to revolutionize offshore operations in the region once approval is received from the EPA.
What makes this venture even exciting according to the company, is its prime positioning between two industry giants: the Baker Hughes Guyana Supercenter to the north and Triple D’s Inc. to the south. These companies, known for providing essential oilfield services and equipment, are perfectly poised to support Guyana’s burgeoning petroleum sector.
AGHI revealed that of the most significant factors influencing the choice of location is the facility’s adjacency to the Demerara River. This advantageous proximity or said enables river access, facilitating the seamless movement of products and supplies to and from offshore operations. By eliminating the need for road transportation, AGHI’s project promises a safer, cleaner, and more efficient operation. Notably, this river access minimizes the risks associated with overland transportation. However, it’s important to note that the initial project phase does not encompass waterfront development.
With an estimated capital investment of approximately US$4 million, the first phase of the project will unfold on Block 1 of the site. Furthermore, AGHI envisions the potential replication or expansion of the project on the three additional blocks within the property. As the facility progresses, it’s expected to serve Guyana’s offshore energy projects for over twenty years, or as long as contracts remain in place.
Regarding timelines, once regulatory approvals are secured and AGHI receives the green light to commence construction, Block 1 is projected to be developed within a span of two years. The company therefore stressed its commitment to prompt execution which aligns with its dedication to creating tangible value for the sector.
The positive impact of AGHI’s project also extends to the local workforce. During the construction phase, it’s anticipated that around 70 local workers will find employment, preferably selected from communities in close proximity to the project area. As the operational phase takes off, an estimated thirty to forty individuals from Guyana are set to be employed on a full-time basis, further contributing to the local economy.
AGHI was keen to note that the backdrop to this development is Guyana’s emergence as a significant player in the global oil industry. With ExxonMobil’s 2015 game-changing discovery of hydrocarbons in the Liza 1 field, the nation gained international attention and potential. Additional findings have only solidified Guyana’s potential to become a prominent oil producer, driving economic growth.
In the context of this growth, AGHI said its venture aligns seamlessly with Guyana’s emphasis on local content and infrastructure investment. The government’s encouragement of offshore operators to utilize supply bases within the nation also underscores the project’s importance in meeting the sector’s evolving needs.
AGHI said it will be partnering with Guyana Logistics and Support Services (GLASS) to construct and operate the chemical warehouse and laydown yard facility.
AGHI said this underscores a proactive approach to transforming Guyana’s oil and gas landscape and by offering efficiency, safety, and sustainability, this initiative is poised to be a game-changer for the sector, further propelling Guyana’s ascent in the world of oil and gas.