ExxonMobil’s recently approved Hammerhead project will provide the additional gas needed for the envisioned second phase of the Gas-to-Energy project. This is according to Minister of Natural Resources Vickram Bharrat.
Speaking on the Starting Point podcast on Sunday, Bharrat said the Hammerhead field “actually has a lot more gas than the other fields” which are currently only producing oil. While Guyana’s share of that oil is sold internationally, the Gas-to-Energy project is intended to use offshore gas to generate domestic electricity and extract natural gas liquids (NGLs) for sale.
At present, the pipeline from Exxon’s Liza field to Wales is expected to transport Liza gas, but it has capacity for more. The government intends to build a second phase of the project with similar infrastructure, requiring additional resources. “Hammerhead now will help us to fill that Wales pipeline,” Bharrat said.
The plan calls for a pipeline from the Hammerhead floating production, storage and offloading (FPSO) vessel, connecting to the existing Gas-to-Energy pipeline. Unlike current projects, where Exxon reinjects gas to maintain oil output, Hammerhead gas will be brought ashore.
“We have been told by Exxon, confirmed by our technical teams, that, unlike the other developments, they will not use the gas to re-inject in order to optimize production like they do in the other fields. That is why the Liza 1, Liza 2 will not be able to fill that pipeline, and that is why Hammerhead is so critical and important,” Bharrat explained.
The project’s environmental impact assessment (EIA) estimates gas production of 90–95 million cubic feet per day (cf/d), with about 10 million cf/d used as fuel.
The Liza field is expected to provide about 50 million cf/d through the 125–130 million cf/d pipeline, while Hammerhead will supply the remainder.
Hammerhead, which carries a US$6.8 billion development cost, was approved by the government and reached a final investment decision last week. Production is expected to begin in 2029.
