Guyana could sell cooking gas and other products

GEORGETOWN, Guyana– Vice President Dr. Bharrat Jagdeo says the country could earn between GUY$70-$100 million  (One Guyana dollar=US$0.004 cents) each year from the sale of cooking gas and other products from a gas-to-energy project that will be developed soon. 

“…if you look at the cooking gas and the other natural gas liquids (NGL) from drying the (natural) gas, we will be able to sell that and get the money.

Jagdeo explained that the government would collect the proceeds from the sale. It is expected to add to Wales’s gas-to-energy project’s tangible benefits.

The government proposes to bring in natural gas produced in offshore oilfields for use at the NGL and power plants built in Wales to the South of here.

According to Jagdeo, the government will likely fund the two plants, while ExxonMobil’s local affiliate will support the pipeline.

The NGL plant is expected to process the natural gas produced offshore to remove other substances (including propane, butane, and pentane liquids) for sale to third-party users. At this plant, other products such as cooking gas may be produced.

The remaining dry gas would be treated for use as fuel to support the third-party power plant that should produce some 300 megawatts of electricity- double Guyana’s current production.

Jagdeo reminded that the project, overall, is expected to slash the cost of energy and spur manufacturing and industrialization in Guyana.

He said that based on this,  electricity could be generated for about five to six cents per kilowatt-hour (KW/h), compared to the current 30 cents cost.

“This project is going to be an excellent project for the country.

“It will help us to stabilize power, supply more power, cheaper gas, supply cooking gas and create the basis for the industrialization for that whole west coast,” the Vice President stated.

Estimates for the pipeline are pegged at about US$1 billion, but the actual costs for the channel and the plants will soon be known as the projects will go out to tender.

Jagdeo also said the gas transported from offshore would be free. As such, the government will only be paying the costs associated with the pipeline and plants.