Dear Editor,
There are many local and international conversions occurring daily about Guyana’s oil resource, and the enormous potential that exists to transform the country and its people is never-ending.
But equally important is Guyana’s natural gas and its intended gas to shore project, which can and will be a game-changer for the country, in providing a reliable and affordable source of energy for domestic consumption and facilitating other industries’ growth.
Mr. Editor, this project has the potential to help eliminate the country’s heavy reliance on imported diesel and other fossil fuels, which are expensive, and its production emits greenhouse gases that contribute to global warming.
This gas-to-shore project will likely have the ability to generate significant revenue opportunities for the country, boosting its economic growth, and making it a major player in the South American continent and within the Caribbean Community (CARICOM).
Mr. Editor, one significant advantage of the gas-to-shore project for Guyana is the provision of a reliable power supply, finally the possibility for an end to frequent blackouts.
This project, as far as I’m aware and what makes sense, is that it will supply power to the country’s main public utility providers, namely, Guyana Power and Light (GPL), and the Linden Electricity Company Inc. (LECI), ensuring a steady, cost-effective, hence “cheaper”, power supply for consumers.
Guyana currently obtains most of its power from expensive diesel generators, which are unreliable and costly, resulting in constant load shedding and fluctuations in the cost of energy that affects customers. This has long constrained economic development in Guyana, resulting in significant costs to small businesses, respective industries, and ordinary people.
The ready access to a reliable, constant energy supply will allow Guyana to develop new industries and maintain existing ones while attracting many foreign direct investments that demand constant and affordable sources of energy.
Mr. Editor, the gas to shore will be a catalyst for the growth and the introduction of other new industries, adding value to our many raw materials in many parts of the country.
The abundance of affordable, reliable energy will enable the country to aggregate its service and manufacturing industries cost-effectively. For example, electric power is necessary in the mining industry, manufacturing industry, and transportation sector.
Making manufacturing more cost-effective will aid in the creation of permanent jobs for our people. Constant and reliable power will facilitate faster and more efficient transportation systems with the setting us of power stations all across the country to cater to an increase of imported electric cars, buses, trucks, and bikes will significantly reduce the overall cost of operating the industry and enhance public transportation in a cleaner and environmentally friendly way.
Additionally, reliable power supply will facilitate key sectors like the food and agriculture industry where temperature-controlled storage is essential, and the hospital and healthcare sectors that require uninterrupted power supply for drugs and medical equipment operation. The ability to provide affordable and reliable energy will attract foreign investment in these industries, creating job opportunities for Guyana’s population while generating income for the country’s GDP.
Further, the gas-to-shore project will significantly increase Guyana’s revenue-generation capacity by leveraging its natural gas reserves to produce petrochemicals and other industrial products. The planned expansion of power production capacity will undoubtedly create excess gas, which, as a country, we can partner with local and foreign companies to commercialize products based on the natural gas produced.
Products such as Nitrogen Fertilizers, is one such product which the government can use to establish a nitrogen plant, which will have the potential to be one of the major suppliers of nitrogen fertilizer in the Caribbean and the entire South American continent. Can you imagine how impactful this will be for local farmers and the agricultural sector, bringing Guyana closer to becoming the food basket of Caricom?
Further, a Methanol Production plant- with a renewable chemical base which can be synthesized from skid-mounted methanol plants, providing a good yield of chemicals such as Formalin, when combined with methanol; this can be converted into many other derivatives, including the use of formaldehyde as a disinfectant and in the production of paints. All of which can be produced and sold to our neighbors in and out of the region.
Another product Guyana can benefit from is Liquefied Natural gas (LNG), which can also be exported. The excess gas produced can also be liquefied and exported, providing additional revenue to the country.
Guyana needs to tap into the growing demand for LNG in the emerging economies of Asia while also catering to regional markets such as North America, in the process becoming a significant player in the LNG market and establishing the country as an energy hub.
Mr. Editor Guyana is well placed to provide energy security for the Caribbean community, considering its proximity to other CARICOM member states.
The gas-to-shore project can serve as an export market for natural gas, and Caribbean states are expected to be eager to benefit from the project. For instance, the Liquefied Petroleum Gas (LPG) market is largely underserved in CARICOM countries, and gas will go a long way to supplement current production, thereby improving the lives of citizens in the region.
Mr. Editor, beyond CARICOM, Guyana can leverage the gas-to-shore project to cement its position as an energy producer for the South American continent. The government has already established partnerships with Brazil, which should be extended with pipelines planted to transport natural gas eventually to the South American behemoth. Similarly, Guyana can leverage the production of LNG on the West coast of the country with pipeline infrastructure to access markets in Peru in the South, significantly contributing to the continued economic development of the continent.
Mr. Editor, this project coupled with the inputs of the main opposition, civil society and the private sector can aid the government, Guyana and its people to be well positioned to be not just be a major beneficiary from its resource but a significant player in the very near future in other parts of the world as a major player in the energy supply industry.
Yours truly,
Hon. Jermaine Figueira.MP
