Guyana invites companies to apply for NGL facilities

According to an announcement published on Sunday by the South American Government, Guyana is seeking a company that will build a facility to produce natural gas liquids as part of its efforts to monetize offshore gas reserves.

Storage and offloading facilities would receive liquids at a rate of 4,200 barrels a day from presently under construction separation plants. This plant, once operational, will remove liquids from natural gases piped from offshore fields operated a consortium led Exxon Mobil.

According to the notice, the new NGL project will include a pipe and can be scaled up to receive 5,900 bpd more liquids in a subsequent phase. It said that the government is looking for experienced firms to submit proposals as part of a pre-qualification process so they can bid later in a proposed contract.

Guyana intends to commercialize first the natural gas produced by the Exxon Consortium through its flagship Gas-to-Energy Project. The U.S. Oil Major completed the construction of the $1 billion pipeline to shore in the last year. It is now awaiting the completion of the onshore infrastructure that is being built by another group before putting the line into service.

The government will sell the liquid natural gas and use the dry gas for home power generation.

Exxon has pushed back the date of the first gas transport by Exxon. The project was originally scheduled to be completed last year. However, delays with contractors in the Gas-to-Energy Project have caused the original completion date to be pushed back. Guyana's prime minister Mark Phillips stated in May that an initial flow of up to 50 million cubic feet a day can be expected by the middle of 2026.

Exxon, a consortium led by Exxon, controls all oil and natural gas production in Guyana. However, only crude is exported at the moment. (Reporting and editing by Margueritachoy. Kemol King)

(source: Reuters)