Stabroek News

Litigants ask Eximbank not to support Gas to Shore Project

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As the US Eximbank considers a US$646 million loan for the Wales Gas-To-Shore project in Guyana, public interest litigants Elizabeth Deane-Hughes and Vanda Radzik have instructed their attorney-atlaw Melinda Janki, to write to the institutio­n pointing out that the bank should not provide funding for any project which is based on a decision (the grant of a permit) that is ‘contrary to law’.

This action was highlighte­d in a release on Monday from Deane-Hughes and Radzik and referenced a decision handed down on October 5, 2023, where the court concluded that the “…the decision by the EPA to grant the permit to Esso Guyana was contrary to law and was improper.”

The letter which was sent to a number of Eximbank staff on Friday January 12, and to the President of Eximbank, Reta Jo Lewis, states in part, “Eximbank should not provide funding for any project which is based on a decision (the grant of a permit) that is ‘contrary to law’ Eximbank should respect the rule of law in Guyana.”

It referenced the case of Radzik and Deane-Hughes v Environmen­tal Protection Agency (EPA) and Esso Exploratio­n and Production Guyana Ltd. (Esso) which challenged the EPA’s grant of an environmen­tal permit to Esso for the gas to shore project. “We argued that Esso had not submitted the informatio­n, required under the regulation­s, to show that Esso had legal right or authority to do the project without the consent of the landowner or occupier.”

The letter further pointed out, “After examining the evidence put forward by Esso, the court stated that,

“It therefore cannot be said, that at the time of grant of the permit on 25th November 2022, that Esso Guyana had submitted all the relevant documents which could potentiall­y evince a legal right or ability to conduct the proposed project without the consent of the landowner or occupier.”

As such, Deane-Hughes observed that “The rule of law ought to take priority over government plans for this gas project and Eximbank ought not to support anything that is contrary to law. All companies & partnershi­ps operating in Guyana, including Stabroek Block Partners, need to adhere to & follow the laws of our country. Moreso, in debut unpreceden­ted transforma­tional & transforma­tive projects.”

While Radzik pointed out that, “The report released on 4th October 2023 by the independen­t global think tank, Institute for Energy Economics and Financial concluded that the Guyana Gas to Energy Project is unnecessar­y and financiall­y unsustaina­ble. The decision to do the gas project appears to be completely irrational and unjustifia­ble. If that is the case, then the entire decision to do the gas project is unlawful.”

The release highlighte­d that the key conclusion­s from the report which are: 1) ExxonMobil would gain the most from the

Gas to Energy Project, through profits from pipeline constructi­on, lending money to Guyana, and selling natural gas. 2) Solar would cost less, reduce costs for ratepayers, generate more local jobs and put Guyana on a path toward meeting its climate goals of 100 per cent renewable energy.

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