Guyana’s Key Gas Pipeline Set to Reduce Emissions and Power Costs Nears Completion

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Guyana’s Key Gas Pipeline Set to Reduce Emissions and Power Costs Nears Completion

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Guyana on the map (© Shutterstock/hyotographics)
Guyana on the map (© Shutterstock/hyotographics)

Guyana's "Gas-to-Energy" project marks significant progress with the completion of a pipeline connecting offshore production platforms to onshore facilities.

ExxonMobil, the lead partner in a consortium that also includes China's CNOOC and U.S. Hess, announced on Wednesday that the connection between the pipeline and the floating production, storage, and offloading (FPSO) units in the Stabroek block is operational.

"Risers have now been successfully connected to the pipeline, and we have been conducting several tests and de-watering exercises to ensure everything is functioning correctly," said Alistair Routledge, head of Exxon Guyana, according to local media reports.   

The 200-kilometer (124.3-mile) pipeline is expected to be operational by the end of the year, delivering natural gas to a 300-megawatt power plant and a natural gas liquids (NGL) facility. This project represents the first time Guyana will utilize associated gas produced offshore for domestic purposes.

The connection of the pipeline necessitated a temporary halt to crude and gas production from the platforms in the third quarter.

The project is anticipated to significantly reduce electricity costs in Guyana and contribute to lower emissions once fully operational in 2025, with approximately $400 million already invested by Guyana in the project development.