Liza Gas Pipeline

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Liza Gas Pipeline is a proposed natural gas pipeline in Guyana.

Location

The pipeline would run from the Liza field in Guyana's offshore Stabroek Oil and Gas Block to the proposed Wales Power Station in the Essequibo Islands-West Demerara region of Guyana.[1][2][3][4]

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Project Details

Background

The Liza Gas Pipeline is part of a gas-to-power project linking the Guyana's offshore Stabroek Oil and Gas Block to the proposed 300 MW Wales Power Station on the Guyanese mainland.

A 2015 analysis by ExxonMobil estimated that the Liza field contained approximately 456 million stock tank barrels (MMSTB) of oil and 3.5 TCF of gas that would be extractable over a 25-year period. Gas extracted from the field was initially to be used to power oil extraction, scheduled for 2020.[17]

Exxon began commercial oil production at the Liza field in December 2019,[5][6] and in early 2020, the company increased its estimates of recoverable resources off Guyana's coast to over 8 billion oil equivalent barrels.[18] As of June 2020 plans for a gas pipeline connecting the Liza field with Guyana's mainland remained on hold.[19] However, the project was still being actively considered by Guyana's Ministry of Public Infrastructure, and the Inter-American Development Bank was reportedly prepared to fund feasibility studies for placement of the pipeline and a gas-fired power station on Guyana's coastline.[20]

In 2021, the Guyanese government announced plans to reroute the pipeline to a new natural gas-to-shore facility on the site of the abandoned Wales Estate Sugar Processing Plant, where the proposed 250 MW Wales power station would be built.[4][10] Gas was originally expected to start flowing through the US$500 to $800 million pipeline as early as 2023[4], though the expected completion date has subsequently been pushed back to 2024.[16]

In July 2021, permitting began for the gas-to-power project.[15] In January 2022, ExxonMobil Guyana's president Alistair Routledge expressed hopes that a final investment decision for the pipeline would be made during the first half of 2022[21], with construction to begin as early as August 2022.[16]

In response to Guyana's ever-increasing gas production, Minister of Natural Resources Vickram Bharrat suggested in May 2022 that a second gas pipeline might eventually be constructed from the country's offshore fields to the mainland, though details remained sketchy.[22]

In February 2022, first production began at Liza Phase 2, with production at the floating, production, storage and offloading (FPSO) vessel expected to reach its target of 220,000 barrels of oil later in the year.[23] Later in 2022, ExxonMobil's affiliate Esso Exploration and Production Guyana (EEPGL) appointed a consortium, comprised of Dutch maritime construction company Van Oord and Luxembourg-based engineering company Subsea 7, to manage and engineer the gas-to-power project.[24] Guyana also launched a tender to choose a marketing agent for its share of Liza crude oil exports.[25]

As of early 2023, ExxonMobil Guyana had sumitted a revised development plan for the Liza field and pipeline to Guyana's Ministry of Natural Resources, and was awaiting clearance of regulatory hurdles before making a final investment decision (FID) on the project.[26] In the meantime, company president Alistair Routledge confirmed that ExxonMobil Guyana would continue developing other associated infrastructure, including roads and bridges, in an effort to keep the project on track for commissioning in 2024.[26][27]

In April 2023, Guyana's vice president announced that the government was preparing to issue a revised permit for development of the Liza field, covering the 20-year period requested by ExxonMobil and extending development rights until at least 2044.[28] In May 2023, ExxonMobil signed a contract with US-based Trendsetter Engineering to acquire TCS subsea valves and connectors, hubs, pressure caps and tooling for the pipeline project, which appeared to remain on track for a late 2024 completion date.[29][30] Other companies, including Subsea 7, Van Oord and TechnipFMC, had reportedly been contracted to provide project management, engineering, procurement, construction and installation of pipelines and pipeline risers for the project[29], although it remained unclear as of July 2023 whether construction had actually begun.[31]

In April 2024, ExxonMobil Guyana's president reported that construction of the offshore section was 70% complete, with two FPSOs scheduled for connection to the pipeline in July or August 2024.[13] The pipeline's onshore infrastructure was reportedly 68% complete, with startup anticipated by the end of 2024.[14]

As of July 2024, the Liza Two FPSO was in the process of being connected to the pipeline, with the Liza One FPSO scheduled for connection soon thereafter.[12] However, delays in the construction of onshore facilities appeared likely to push the pipeline's commercial startup date into 2025.[32]

Opposition

Critics have questioned the financial viability of building the Liza Gas Pipeline and the associated Wales Power Station, suggesting that solar electricity would offer a more cost-effective way to satisfy Guyana's electrical demand.[33][34]

Articles and resources

References

  1. "Stabroek Gas to Shore Pipeline". ExxonMobil Geotechnical. 2021-02-03.{{cite web}}: CS1 maint: url-status (link)
  2. "Exxon's fibre optic cable, gas pipeline to follow similar route". OilNOW. 2022-05-06.{{cite web}}: CS1 maint: url-status (link)
  3. ExxonMobil yet to decide on constructing gas pipeline, Demarara Waves, Jul. 6, 2018
  4. 4.0 4.1 4.2 "Jagdeo justifies Wales location for gas-to-energy project, associated industries". Demerara Waves Online News. February 10, 2021.
  5. 5.0 5.1 "Oil Boom Begins in Guyana as Exxon Produces First Liza Crude". Bloomberg. December 20, 2019.{{cite web}}: CS1 maint: url-status (link)
  6. 6.0 6.1 "ExxonMobil begins oil production in Guyana". ExxonMobil. December 20, 2019.{{cite web}}: CS1 maint: url-status (link)
  7. "Exploration". Hess Corporation. Retrieved 2021-03-29.{{cite web}}: CS1 maint: url-status (link)
  8. "Guyana". CNOOC International. Retrieved 2021-03-29.{{cite web}}: CS1 maint: url-status (link)
  9. "Guyana wants to bring Liza gas to shore". Eco Atlantic Oil & Gas. April 27, 2017.
  10. 10.0 10.1 David Blackmon. "ExxonMobil Natural Gas Will Help Guyana Meet Its Climate Goals". Forbes. Retrieved 2021-05-04.
  11. MENAFN. "Government of Guyana seeks investment partners for gas-to-en..." Retrieved 2021-07-14.
  12. 12.0 12.1 12.2 "Oil production paused at Liza Two to hookup gas pipeline". Kaieteur News. 2024-07-17.{{cite web}}: CS1 maint: url-status (link)
  13. 13.0 13.1 "Exxon to shut 2 platforms in Guyana for 2 weeks each to connect pipeline". Reuters. 2024-04-30.{{cite web}}: CS1 maint: url-status (link)
  14. 14.0 14.1 14.2 "Gas-to-shore pipeline 70 per cent complete". Guyana Chronicle. 2024-05-01.{{cite web}}: CS1 maint: url-status (link)
  15. 15.0 15.1 "BNamericas - Permitting begins for Guyana gas-to-power pr..." BNamericas.com. Retrieved 2021-07-14.
  16. 16.0 16.1 16.2 Palmigiani, Fabio (April 26, 2022). "ExxonMobil to build pipeline for landmark $1.3 billion Guyana gas-to-energy project | Upstream Online". Upstream Online.{{cite web}}: CS1 maint: url-status (link)
  17. Liza Field Development - The Guyanese Perspective, Society of Petroleum Engineers, 2018
  18. "ExxonMobil's latest discovery raises Guyana recoverables above 8 billion barrels". World Oil. January 27, 2020.{{cite web}}: CS1 maint: url-status (link)
  19. "Guyana: ExxonMobil Ramps Liza Output Back Up after Gas Compressor Issues Fixed". Offshore Engineer Magazine. June 22, 2020.
  20. "Ministry says plan to use natural gas from Liza-1 well still in the works - Stabroek News". Stabroek News. June 2, 2020.
  21. "Liza Unity start-up, gas-to-energy FID among major projects for Exxon this year - Routledge". OilNow. January 5, 2022.{{cite web}}: CS1 maint: url-status (link)
  22. "Guyana considers second gas pipeline to monetise growing reserves | OilNOW". OilNOW. May 5, 2022.{{cite web}}: CS1 maint: url-status (link)
  23. Kulovic, Nermina (11 February 2022). "ExxonMobil flows first oil from second offshore development for Guyana". Offshore Energy. Retrieved 28 October 2022.
  24. Menteth, Thames (2 August 2022). "Van Oord consortium to deliver Guyana offshore gas pipeline". Ground Engineering (GE). Retrieved 28 October 2022.
  25. "Guyana launches tender for new agent to sell its crude exports". Reuters. 22 September 2022. Retrieved 28 October 2022.
  26. 26.0 26.1 "FID on Guyana gas project will follow revision of Liza license - Exxon". OilNOW. February 10, 2023.
  27. "ExxonMobil starts early works on gas-to-energy project in Guyana". Caribbean National Weekly. February 11, 2023.
  28. "Revision of Liza development plan complete - Jagdeo". OilNOW. May 3, 2023.
  29. 29.0 29.1 "ExxonMobil taps Texas-based firm for gas-to-energy project off Guyana". Offshore Energy. May 29, 2023.{{cite web}}: CS1 maint: url-status (link)
  30. "Gas-to-Energy project on track for 2024 delivery - Jagdeo". May 20, 2023. {{cite news}}: |first= missing |last= (help)
  31. "Exxon forging ahead with pipeline projects in South America, emphasizing gas development agenda". OilNOW. July 6, 2023.
  32. Čavčić, Melisa (2024-08-30). "TechnipFMC: It's a wrap on Guyana's flagship $1.9 billion gas-to-energy project (Video)". Offshore Energy.{{cite web}}: CS1 maint: url-status (link)
  33. "Int'l lawyer challenges VP Jagdeo to show evidence that gas-to-shore project will work". Kaieteur News. March 27, 2021.{{cite web}}: CS1 maint: url-status (link)
  34. "Reinject gas and save Guyana". Kaieteur News. May 30, 2022.{{cite web}}: CS1 maint: url-status (link)

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