CGX silent on whether mangroves were destroyed for construction of deepwater port facility

CGX Executive Chairman Dr Suresh Narine speaking at the recent Guyana international oil and gas conference
CGX Executive Chairman Dr Suresh Narine speaking at the recent Guyana international oil and gas conference

With major works expected to start soon for CGX Energy Inc’s deepwater port in Berbice, the company’s Executive Chairman Dr Suresh Narine has refused to say whether any mangroves were destroyed during the preparation of its 30-acre plot at Corentyne, Berbice.

The deepwater port is being constructed aback Seawell Village, Corentyne, Berbice and the civil works are being carried out by the company’s subsidiary, Grand Canal Industrial Estates Inc (GCIE). The deepwater port facility will cost a total of US$80 million.

During the recently concluded international oil and gas conference, Dr Narine had informed that a Memorandum of Understanding (MoU) would soon be signed to retain 10 acres of mangroves on the plot. Pointing out that Berbice is known for its swamps and agricultural lands, he explained that when developing facilities, like the port, environmental considerations should be put in place. Nevertheless, he said that some environmental degradation is required in the furtherance of economic growth.

“…Those [standing mangroves] are effectively going to be the source of an MoU that’s about to be signed, where we look at the coexistence of mangrove habitats with commercial activity on our rivers…through those 20 acres we have 400 meters of frontage,” he had said.

When contacted yesterday, the CGX Executive Chairman said that he is not in a position to speak on whether the company destroyed mangroves in preparation for the construction of the deepwater port facility.

“As a publicly-traded company, we only speak publicly first to the market and then to other newspapers.  I am afraid you will have to wait until we make a further announcement. Hope you understand,” he said in a brief response to the questions posed by Stabroek News.

CGX is expected to begin the construction of docks and dredging very shortly, while it is in the process of selecting the engineering, procurement and construction (EPC) contractors. Narine had previously said that CGX is looking at its offshore supply component of the port to be completed during the latter part of this year with the facility being operationalized by the latter part of 2022.

The port itself, when completed, is expected to have an offshore supply component that will provide essential support to offshore oil and gas operations.

Narine had also said that as Guyana seeks to strike a balance between preservation and development of its oil and gas sector some disruption to the environment has to be expected.

“If we want to see progress, we’ve got to disturb the environment somehow. But if we’re going to do that, we must disturb it as intelligently and as carefully as we can,” he had said.

Persons familiar with the area where the facility is being conducted reported that mangroves had to be destroyed to facilitate the development. Mangroves are protected under Guyanese laws and just last year, a large swathe of mangrove forest was destroyed at Malgre Tout/Versailles on the West Bank of Demerara by a shore base investor –TriStar Investment.

Government had justified the move to grant approval for the removal of the mangroves.

“The PPP/C in its approach towards the development of the country has said repeatedly: we will not be obstructionists; we will be facilitating and we have facilitated and will continue to facilitate developmental projects once it comes in a framework where it is properly regulated, sustainable, where there is no danger to life and livelihood, and where we can see the creation of jobs and this project fits within that framework,” Public Works Minister Juan Edghill had said.