On the sidelines of the Offshore Technology Conference (OTC), over 30 members of Guyana’s delegation to the Houston, Texas event were given the opportunity to tour oil and gas consortium Lindsayca/CH4’s (LNDCH4) facility and updated on employment opportunities for over 1500 Guyanese.
Lindsayca/CH4 is no stranger to Guyana, having been engaged by the People’s Progressive Party/Civic (PPP/C) Government last year to construct the combined 300-megawatt power plant and natural gas liquids (NGL) plant at Wales, West Bank Demerara as part of the gas-to-shore initiative.
During the facility tour of LNDCH4, Guyana’s delegation met with the senior leadership of the companies. They were given an overview of the project, insights into comparative international projects, the timeline for the gas-to-shore project and the procurement opportunities.
Then there is the matter of local content. According to LNDCH4 Chairman Nelson Drake, the consortium is looking to utilise as much local content as possible in Guyana. In addition to engaging services from businesses in Guyana, they are looking to hire approximately 1500 – 2000 Guyanese to work on the project.
“Although we are a US consortium, our aim is to use as much local content as possible in Guyana. In addition to engaging services from businesses in Guyana, we also aim to hire approximately 1500 – 2000 people in-country,” Drake said.
However, members of the delegation were in high praise of the tour. Guyana Oil & Gas Energy Chamber (GOGEC) President Maniram Prashad lauded the company’s transparent approach to information sharing while appraising the business community of the local content opportunities.
“We are pleased to see the approach that LNDCH4 has taken in sensitising the business community, engaging in such an informative and transparent manner, and explaining the various opportunities that will be available for Guyanese businesses. We feel confident that this project will be transformational for Guyana,” Prashad said.
Nayteram Ramnarine, an economist with the Private Sector Commission (PSC), also spoke about the value of the visit. Additionally, Georgetown Chamber of Commerce & Industry (GCCI) Executive Secretary Kathy Smith noted the importance of the project not only nationally, but also in Region Three.
“This trip provided valuable insight into the timelines and processes involved in developing the gas-to-energy plant in our country. As an economist for the PSC, I am committed to ensuring that all businesses within our organisation are fully prepared to capitalise on the opportunities that will arise from this project,” Ramnarine said.
“The presentation given highlighted the phases of the project towards the production of reliable and cost-effective source of energy for power generation, thereby reducing electricity costs and improving energy security. Also important is job and local partnership opportunities that will spur economic growth,” Smith meanwhile added.
Last year, the consortium of CH4 Guyana Inc/Lindsayca Inc emerged out of a competitive process as the winning bid to construct the 300MW Combined Cycle Power Plant and NGL Plant under an Engineering Procurement Construction (EPC) Contract.
Earlier, nine firms were publicly pre-qualified to bid on the EPC contract, and Request for Proposals (RFP) were issued to these bidders. By September, five bids, ranging between US$450 million and US$900 million, were submitted. The EPC Contract will be supervised by a global supervision firm – Engineers India Limited.
Apart from the power plant and NGL plant, the scope of US$900 million gas-to-shore project, which has a 25-year lifespan, also consists of the construction of 225 kilometres of pipeline from the Liza field in the Stabroek Block offshore Guyana, where ExxonMobil and its partners are currently producing oil.
Approximately 220 kilometres of subsea pipeline offshore will run from the Liza Destiny and Unityfloating production, storage and offloading (FPSO) vessels in the Stabroek Block to the shore. Upon landing on the West Coast Demerara shore, the pipeline will continue for approximately 25 kilometres to the NGL plant in Wales.
Exxon, with funding from cost oil, is expected to deliver the completed pipeline by the fourth quarter of next year, in order to allow for the commissioning and testing ahead of the power plant coming online by the end of 2024.
The pipeline would be 12 inches wide and is expected to transport some 50 million standard cubic feet (mscfpd) of dry gas per day to the NGL plant, but has the capacity to push as much as 120 mscfpd.
The route of the pipeline onshore would follow the same path as the fibre optic cables and would terminate at Hermitage, part of the Wales Development Zone (WDZ) where the gas-to-shore project would be housed.
