Gov’t seeking investors for gas to shore project
CDB President tours projects: On Saturday, Caribbean Development Bank (CDB) President Dr. Hyginus ‘Gene’ Leon and his delegation guided by Minister of Public Works, Juan Edghill and Minister of Housing and Water, Collin Croal along with officials of the Finance Ministry, inspected various developmental project sites that form part of the GOG-CDB portfolio of projects currently under implementation.
A release from the Ministry of Finance said that these sites included sections of completed works at New Hope, East Bank Demerara and the completed Rock Armour Revetment Project at Crane/Mary, West Coast Demerara and the fourlane road and new housing area at MochaDiamond. This Ministry of Finance photo shows Dr Leon (left) with government officials.
The Government of Guyana (GOG) is seeking investors for all aspects of its controversial US$900m gas-to-shore project which is to be located at Wales, West Bank Demerara.
In a notice published on the Ministry of Natural Resources’ website, government is asking for Expressions of Interest (EOI) for gas-related investments and that these be submitted by August 29th 2021.
Prefacing the requirements for the EOI, government explained that after extensive evaluation of multiple sites with ExxonMobil for a gas to shore project, it has approved what it called the Wales Development Zone as the termination point for the pipeline.
To make future plans for a world class development area a reality, the GOG issued a call for investors via the Ministry of Natural Resources (MNR).
“The GOG expects to receive a guaranteed minimum of 50mmscfd of gas by 2024 from the 12 inch pipeline from the Liza area, which will have a capacity of up to 130 mmscfd,” the notice, posted on MNR’s Facebook page states.
“The GOG invites Expressions of Interest (EOIs) from interested parties for (i)Joint participation with the GOG and (ExxonMobil’s subsidiary Esso Exploration and Production Guyana Limited), in designing or utilizing the outputs from a NGL (Natural Gas Liquids Facility)/LPG (Liquified Petroleum Gas) facility and related facilities. (ii). Design, construction and financing of a power plant fueled by natural gas, where the power will be delivered into the GPL grid. (iii) Industries that can utilize natural gas for natural gas driven developments and growth. For this initial phase, projects must have a maximum demand of 10mmscfd with a preference for projects utilizing 1-5mmscfd,” it adds
It explained that the EOI may include each element individually but firms or persons can respond to all elements.
But where the item listed “ii and iii” are submitted jointly, the EOI must demonstrate the nexus between the projects as detailed by guidelines it outlined in the notice.
The advertisement stressed that responses to the EOI should contain adequate information including the capabilities, both technical and financial, track record, profile and relevant information on the applicant or consortium. Evidence of financial resources available for the proposed project should also be included.
On the business plans submitted by interested parties, the government says that it must include a description of the proposed project, details on land required and related infrastructure, required quantities of gas and electricity, capacity and energy with information on expected pricing volumes and ability to manage potential variable gas flows. Pricing and volume information should be benchmarked against comparable projects.
Financial projects covering investment, employment, revenue, OPEX (operational expenditure), funding, capital. Structure and overall financial economic benefits, if available; financing details such as term sheets, should also be included.
Timelines for key milestones showing start date and finish date and conditions precedent to such milestones were also requested.
Local content also holds a focal point as the company must show details that specifically include Capex (Capital expenditure), Opex, ownership, and employment and material and supplies.
Diagrams of the layout of the plant, along with an explanation of related technology are also being asked for.
The response to the EOI, government said, will be used to determine parties that will be selected to work with it in accomplishing its desired goals and targets.
The notice said that questions from interested parties will be responded to but they must be received no later than 10 days of the closing deadline for the EOI.
Interested parties are also expected to register via the Ministry of Natural Resources.
All interested companies shall bear all costs associated with the preparation and submission of their EOIs.
Government made clear that it “is not bound to accept any expression of interest and reserves the right to select any parties for any specific element of the EOI and to annul the process at any time prior to further direction without their incurring any liability to the affected interested parties”.
The terms of an Environmental Impact Assessment for this project are now being constructed.