A plan to purchase Guyana’s excess GtE 80 million scfd of natural gas and use it for both nations’ economic growth

Since the discovery of Oil and Gas, Guyana has tried to look for possibilities to reach a sustainable economic and social development for the prosperity and the wellbeing of its people. This is in line with the 17 Sustainable Development Goals of the United Nations. But the main problem, apart from other issues, is funding for projects and programs for Guyana’s development goals. How effective and efficient can Guyana manage its Oil and Gas resources to get its fair share for fulfilling its needs according the SDG of the UN? Let us take a look at natural gas.

Confronted with high energy rates (all the feedstock for the power generation is imported) the first thing is to try to replace importation with its own natural gas. Guyana has succeeded in realizing its Gas-to-Energy [GtE] Project after several extensive feasibility studies. The GtE

Project will be in operation during 2025. This project needs 50 million scfd natural gas to power a generation plant of 300 MW while the transport capacity of the pipeline is 130 million scfd. So, the balance of 80 million scfd can be made available for power generation (proposed project) of about 400 MW in the Nickerie district, in the Western part of Suriname. The energy can be used for the industrial development of both countries.

In this initial period, the government of Suriname can purchase the 80 million scfd through its wholly owned energy company, EBS, instead of using the energy generated by EBS. Energy from natural gas is cheaper than from HFO. As industrialization starts to increase at the same time the energy decrease for EBS will take place. This proposed project will accelerate the monetization of the natural gas developments of Guyana and is in line with the following: Formation Agreement for the Strategic Dialogue and Cooperation Platform signed on November 24, 2020 by the Government of the Republic of Suriname and the Government of the Cooperative Republic of Guyana. Cooperation, under this Agreement, shall include areas of common interest. One of the areas is Natural Resources including Mining and Oil and Gas.

Meanwhile, Guyana has sent out Invitation for Request for Proposal for Design, Finance, Construction, and Operation of Required Gas Infrastructure to Support Upstream Developments. 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 optimal solution for the

Project, will have exclusive rights to negotiate with the GoG for its entitlement of the gas to ensure the viability of the Project and the overall value chain. (REF.: GOG/MNR/2024/GTE-01).

Next step

● GoG and GoS to sign an MOU for cooperation for the 400 MW Power Project and for the supply of Natural Gas.

● Two RFPs based on Design, Finance, Construction, and Operation for the pipeline and for the power generation plant will be sent out.

It is recommended that the MOU be signed by both Presidents on the Suriname Energy Oil and Gas Summit on 4-7 June 2024.