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Home Letters

Open Letter to Mr. Narine on Gas to Energy Project

Admin by Admin
August 7, 2023
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Dear Mr. Narine & The Guyana Dialogue Team,
 
I take this opportunity to inform The Guyana Dialogue Team of the following in an email trail viz a viz Gas to Energy (GtE) project.
 
The GtE project started out at a cost of US$700M to half the cost of electricity. To date the current project cost is US$2.1B (still counting) to half the cost of electricity. Kindly explain or share the formula/s and/or documents which allow/s a project to triple costs while still maintaining the claim to half the price of electricity.  Does The Guyana Dialogue team have any of these formulas and/or documents to verify this as a fact? It is interesting how the repetition of words makes the claim a fact in Guyana’s version of the implementation of the Oil and Gas sector!
To date the following has not been sighted in the public forum:
  • Any financial feasibility or any feasibility study for the Wales location with its approximate 25 km of onshore pipeline
  • Any feasibility study for the associated gas per Article 12 Petroleum Sharing Agreement 2016.
  • Any Gas Utilisation Plan
  • The enactment of the recommendation of the September 2022 awarded Denton’s consultancy: 17/2022/26-Review of legal, commercial advisory services for negotiations support for gas to energy.
     

Please be informed – FYI, that any and/or all of the cases may wend its/their way to the final court of determination Caribbean Court of Justice (CCJ), this creates a time factor for implementation:-

  • There is currently an ongoing court case which affects the right of way (RoW) of the pipeline. To date the RoW has not been secured. Instead, a copy of the letter attached from SICIM/GAICO asking residents to sign is being circulated in Java & Bordeaux. Why would the contractor need to ask residents to sign this letter if the GoG had in fact acquired the land. To date vesting has not been completed despite what GoG officials claim in the public domain.

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  • There is currently an ongoing court case which challenges the Environmental Permit (EP) issued to EEPGL on behalf of the Stabroek Block Partners. The GoG and Stabroek Block Partners represented by EEPGL have been joined to the proceeding upon request.  Govt. and Exxon unite again to fight citizens in another court case – Kaieteur News (kaieteurnewsonline.com)

  • There is currently an ongoing court case which challenges the waiver of an Environment Impact Assessment (EIA) issued by Environmental Protection Agency subsequently upheld by Environmental Assessment Board (EAB). Court action challenging hearing on impact survey for gas to power plant – Stabroek News

  • There are more court cases in the pipeline.

Kindly note that these matters have been

  • In the national press on numerous occasions prior to June 2023

  • Communicated directly to EEPGL, ExxonMobil, Hess and CNOOC

  • Communicated directly to the relevant authorities in Government in particular Ministry of Natural Resources, Environmental Protection Agency, Environmental Assessment Board, Attorney General, Minister of Finance, inter alia.

And Further kindly note that the Government of Guyana is in the process of a loan application AP089490XX from US-EXIM Bank to facilitate the construction of the NGL and Power Plants. Members of Civic Society have expressed their concerns in writing to US-EXIM bank about the lack of adherence to rule of law, inter alia. Please see email trail hereunder for US-EXIM’s response to request. This too has implications on the time frame for implementation. Why the rush and cutting of regulatory and/or legal requirements in this project. If in fact it is financially viable and can cut electricity cost by 50% then it will also be so after adherence to the rule of law, Gas Utilization Plans, Gas Management Integrity Plans, Pipeline laws, financial feasibility plans, power purchase agreements, gas sales agreements, inter alia. Please see hereinbelow the acknowledgement from US-EXIM Bank and Office of the Attorney General about concerns and requests from members of Civic Society.

Please note email trail in which a myriad of the concerns and non-adherence to rule of law have been documented to the implementing and other parties involved in the GtE project. There are other email trails which document other issues with the GtE project. The implementing parties are the addressees. All email trails are available for dissemination. Any of these issues may lead to legal proceedings being initiated in due course and with time.

All for your information and guidance.

Kind regards,

Elizabeth Deane Hughes

&

Other members of Civic Society

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