ExxonMobil is expected to sell Guyana the natural gas that is being produced in the Stabroek Block in an effort to recover the cost associated with the construction of the pipeline needed to transport the fuel to the Natural Gas Power Plant at Wales. But Opposition Member of Parliament David Patterson said the arrangement not only contradicts discussions the oil company had with the former APNU+AFC Administration, but a commitment made by President Irfaan Ali.
In June, 2022, President Ali said that the gas produced offshore Guyana will come at no cost to the Guyanese people. However, according to the President of ExxonMobil Guyana Alistair Routledge, the company will be selling 50 million cubic feet of natural gas per day to the Government to recover the cost of the pipeline.
In condemning the financial arrangement, MP Patterson said the APNU+AFC Administration had made it clear that Guyana would not hav been paying for its own natural gas.
“During the embryonic discussion with Exxon on the possibility of bringing gas to shore for the purpose of power generation, the Coalition administration informed the company in no uncertain terms, that any agreement which would entail Guyana having to pay for the natural gas, would not be acceptable,” the APNU+AFC Parliamentarian explained in a statement.
He said in making its position known, the David Granger Administration had cited two primary reasons.
“At that time, our reasons were: (a) that the associated gas was indigenous (ah we own) and (b) linking the price of our natural gas to the international market would not provide the level of energy security required for the country, since external events (such as the current Ukraine war) could adversely influence the international price of natural gas, which would result in Guyana paying a premium price for its own gas,” MP Patterson explained.
According to Patterson, the coalition’s discussions were centered on the capital cost for the pipeline as well as costs associated with operations and maintenance of the pipeline. He said based on the disclosures made by ExxonMobil; it would appear that the People’s Progressive Party/Civic (PPP/C) Administration has made a complete U-turn on its earlier position.
With Government tight-lipped on the project, MP Patterson said the multi-billion-dollar gas-to-shore project, which is expected to be completed by December 2024, is shrouded in mystery.
He said to date, the Government has not made public critical information on the rationale used to select the project site at Wales or the final cost of the project. “…the final tariff to consumers for any electricity procured is still unknown, the full technical details including the proposed connection to our fragile transmission and distribution network are unclear, the role of the newly formed Guyana Power and Gas Inc. is unknown. In fact, only a select few are aware of the full details of what will be the largest ever infrastructure project ever undertaken in Guyana. Surely that’s an unacceptable state for any country,” MP Patterson said.
With the hope of getting the required answers, the APNU+AFC has filed a Motion in the National Assembly calling on the Government to hand over all documents relating to the project.
But MP Patterson said based on “the track record” of the Speaker Manzoor Nadir, he is not optimistic that the motion will be debated in the National Assembly.
“As stewards of their future, Guyanese deserve to know the details and be given the opportunity to contribute to ensuring the effectiveness and efficiency of this project, lest we find our taxes and other state revenue supporting another unprofitable pet project like the Skeldon,” he reasoned.
You must be logged in to post a comment Login