Proposals invited for gas infrastructure to support upstream developments

Even as construction continues in Region Three at the site for the proposed Gas to Energy (GTE) Project, the government yesterday advertised Requests for Proposals (RFP) for the Design, Finance, Construction, and Operation of what it called a Gas Infrastructure to Support Upstream Developments.

This newspaper understands that it is a different operation from the GTE project, though its exact purpose is unclear. Nebulous too, is if this facility will also be located at or near to the GTE project site on the West Bank Demerara. Efforts to contact Minister of Natural Resources Vickram Bharrat, to gain clarity on the notice, were futile as messages went unanswered.

On the Ministry of Natural Resources website, the notice states that it is inviting companies to submit plans on how they would build and operate a centralised gas connection, storage and transport facility for all natural gas accessed and produced by all oil companies operating in Guyana.

“The Government of Guyana (GoG) is seeking the safe and timely development of its gas resources as well as creating an open-access infrastructure system for all existing and future upstream participants to support current and future upstream developments in Guyana,” the notice states.

It explained that “upstream” means the upstream oil and gas developments including the necessary pipelines to connect, as needed, to such gas infrastructure required to monetize upstream gas.

It pointed out that applicants, “shall evaluate the commercial, technical, and environmental feasibility for the necessary infrastructure (‘the project’).

“... In order to be considered, all interested parties must respond to this RFP. This project will be strictly financed and owned 100% by the private sector. As part of this RFP process, the selected applicant, if any, with the most optimum solution for the project, will have exclusivity to negotiate with the GoG for its entitlement of gas to ensure the viability of the project and the overall value chain,” the notice reads.

The ministry said that the requirements of the RFP includes:

• The developer’s capability and credibility to execute such a project.

• Clear written agreements among the parties, and if a consortium, evidence of consortium agreement for this project.

• Site plan for the project

• Summarized and detailed project schedule

• Project costs

• Project structure diagram

• Business plan

• List of legal agreements

• Proposed capital structure and details of proposed local content.

Interested applicants can obtain further information by emailing the ministry through its Permanent Secretary at imckenzie@nre.gov.gy or by writing to the Permanent Secretary at the MNR’s office 96 Duke Street, Kingston, Georgetown, Guyana.

The notice said that all applicants should submit their proposals not later than 09:00 hrs on Tuesday, February 27, 2024, into the Tender Box at the National Procurement and Tender Administration Board, Ministry of Finance, Main and Urquhart streets, Georgetown, Guyana. They will be opened on the same day and applicants can attend the opening.

All late submissions shall be rejected and returned to applicants unopened.