Dear Editor,
Yesterday’s disclosure that Exxon will be selling 50 million cubic feet of natural gas, per day, to the government is a startling revelation and contrary to the PPP’s previous public commitment regarding the financing and feasibility of the Wales Gas to Shore project. During a public briefing to address concerns regarding the Wales gas to shore project, President Ali announced that “The gas comes to the people free of cost” (No cost yet for gas-to-shore project – SN June 30th 2022), however Exxon has now informed the nation that we will be paying that company for our own 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. 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.
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. It now appears that the PPP has made a complete U-turn on this position. The details surrounding the Wales Gas to Shore project are shrouded in mystery – the reasoning for the selection of the current location has yet to be disclosed, the final project costs have yet to be publicly disclosed, even more worrying that we are now informed that Exxon is yet to make a Final Investment Decision (FID) on 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 – and worse for one of the fastest growing economies where the One propaganda Guyana creates the impression that the citizens are included in the plans for their future. A Motion has been submitted to the Parliament calling for the full release of all documents relating to this project, but it has not gained the approval of the Speaker. Further, based on the Speaker’s track record of previous rulings, I am not optimistic that any Motion on these concerns will ever be debated in Parliament.
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 sugar plant, using billions of dollars in bailout after bailout, seventeen years later and still counting.
Sincerely,
David Patterson
