Guyana seeks proposals for developing natural gas infrastructure
Guyana’s natural resources ministry this week invited proposals for the development of infrastructure to support exploitation of the country's reserves.
The South American state has made significant oil discoveries in recent years in its offshore zone, but the government next wants to focus on developing the large natural and associated gas resources that have also been found off its coast.
At the offshore Stabroek block, operated by ExxonMobil, gas accounts for around a quarter of the 11bn barrels of oil equivalent that have been identified. Sizeable quantities of gas have also been found at Block 58, where TotalEnergies serves as operator, as well as some at the Corentyne block offshore Guyana, operated by Canada’s CGX Energy.
The natural resources ministry has requested proposals for the design, finance, construction and operation of infrastructure, envisaging that these projects will be both financed and owned by the private sector. Those whose proposals are selected can enter into exclusive negotiations with the government on its entitleemnt of gas, to ensure that the selected project is viable.
The proposals are due by February 26.
Having launched oil production at Stabroek in 2019, ExxonMobil is now in talks with the government on piping associated gas at the site to shore, for the purpose of generating power. The current scope of the plant calls for the construction of a 60mn ft3/day pipeline to supply a 300-MW power plant.
In August last year, Bloomberg reported that TotalEnergies’ partner at Block 58, APA, was discussing with Guyanan authorities on the development of a floating LNG project. On the other hand, no plans have taken shape to date on exploiting gas at CGX’s Corentyne block.