Guyana’s Director of the Department of Energy Dr Mark Bynoe said the South American country is exploring potential downstream activities as the fledging oil and gas sector continues to grow and diversify.
Speaking on National Communication Network’s (NCN) Independence Forum on Monday, Dr Bynoe revealed that one of those activities being explored is “bringing gas to shore”, adding that it is “wll advanced.
“We have a draft memorandum of understanding and a very cogent working group made up of critical players within the government,” the director of energy said.
“We hope to engage the private sector as well so that they can understand what the opportunities are,” he continued, emphasising the importance of private sector engagement in creating an environment in which investments can be made.
Bynoe’s disclosure comes days after Guyana had its second lift of one million barrels of crude from the Liza Destiny floating production storage and offloading (FPSO) vessel onto oil tanker Sonangol Namibe, a Bahamian flag carrier.
“We are beginning to build out that structure to allow us to not only have a state of the art department but, at the same time, to allow us to take advantage of the technological advances…”— Dr Mark Bynoe, director, Department of Energy — Guyana
He reiterated his commitment to ensuring that a “state of the art, contextually relevant industry best practice department” is established to manage the oil and gas sector.
“We are beginning to build out that structure to allow us to not only have a state of the art department but, at the same time, to allow us to take advantage of the technological advances, the development and articulation of a robust legislative framework and pursue avenues that will allow for greater cost efficiencies,” Bynoe stated.
Back in 2017, Natural Resources Minister Raphael Trotman told local business leaders in Georgetown that the Government wanted to pipe natural gas produced at the offshore Liza discovery more than 120 miles to shore.
At that time, Trotman shared that Liza operator, ExxonMobil, had informed that Guyana could expect between 30 million and 50 million cubic feet of natural gas produced per day in conjunction with the 120,000 barrels per day of oil when the first phase of production begins.
Guyana’s first production of crude oil began in December 2019 and earlier this year, in February, shipped its first share. The South American country has since collected US$55 million for the first shipment.
“That amount (of natural gas) can provide, if we choose to go in that direction, a 200-megawatt generation plant,” Minister Trotman said in 2017, adding that the Government could be use the natural gas in power generation, as industrial feedstock, or to revive a shuttered aluminium production plant.