Dear Editor,
It took a presentation by Winston Brassington to shed some light on the proposed Wales gas to shore project. His presentation confirms what the opposition, and the general public, has been saying for the last eighteen months – which is, the current gas availability is limited to production of electricity only.
At the official media briefing on April 26, 2021, the country was regaled that this project will not only supply cheap power and LPG, but also fertilizer (Ammonia, Urea and other agro-processing byproducts), solid waste pyrolysis and even a cement plant. In other words, the natural gas to be piped to shore would kick start Guyana’s industrial revolution – a no brainer! These myths were constantly peddled in the public, and even repeated by Govern-ment Ministers in the recent parliamentary debate on the project, where some of the glorified glossing of this project found its way into Budget 2022. Our ever-accommodating private sector, swallowed these tall tales, hook line and sinker and took to the airwaves promoting the project by referencing how much monies will be saved, since we are soon producing our own fertilizers and cement. It appears the government is very comfortable lying to its own citizens, as well as the Parliament, but draws a line when addressing a group of foreigners attending a high-priced conference.
It has now been confirmed that the 50mcf of gas piped to shore will only be sufficient to power the generating sets and a small LPG plant. All the other bells and whistles used to justify this project cannot be done at this initial stage nor in the foreseeable future. Guyana will be expending over US$1.4B and counting (Exxon – US$900M + GOG US$504M) for primally 250MW generating sets. This is an incredible amount, considering the fact that the current cost for 1MW of generating power is approximately US$1M, that’s correct, 250MW of natural gas-powered generating sets can be procured for approximately US$250M – yet, the Government is paying US$1.4B. The public deserves to be told what the rationale is for paying US$1.15B more under the Wales Gas to Shore project.
Mr. Brassington’s presentation also confirms that the country will be paying Exxon for our own gas. At minimum, one would have expected the government to leverage the fact that they have, despite public reservations, always been very generous and accommodating with Exxon on issues such as the Payara approval, Yellowtail approval (soon to be issued), consistent flaring in violation of their permit, lack of full coverage insurance and wastewater dumping which may be the reason why our fishing industry is on its knees. All of these accommodations place the Government in a strong position to demand a better deal and further, insist that the natural gas be free to Guyana.
The Wales Gas to Shore project will end up like previous PPP mega projects – a white elephant funded by the hard-working people of Guyana with little or no return if changes are not made soon.
Sincerely,
David Patterson
