The four-day Guyana energy conference opened in Guyana on Monday with President Irfaan Ali urging investors to look beyond the traditional oil and energy sector and follow his administration’s policy shift placing emphasis on supplying chain mechanisms for the holistic development of the entire Caribbean Community (CARICOM) region.
“We are meeting at a different conference from last year because very importantly we have added the supply chain to this conference and it is not added to this conference to prolong the title of the conference, it is added because there is an important shift from a policy perspective, from an investment perspective and from a development perspective.”
Ali told the Energy Conference and Supply Chain Expo that his administration wanted to highlight to investors that as the energy story continues to unfold “it is important for us to understand the role, logistics and transport system investment will play in the building out o our economy, but more importantly in the full and complete integration of our economy with CARICOM, South America, the Dominican Republic and further a field.
“This is the priority, ensuring that the economy is fully integrated within our region,” Ali said noting that this potential shift could only be translated into value if there is a market.
”If we can define our market space within the region itself then it points to very low-hanging fruits,” he said, adding “but we have to build the infrastructure to facilitate this”.
He said one example is the government’s plans for reducing electricity rates by as much as 50 per cent through the gas to energy project.
The government anticipates that the new natural gas plant would be capable of generating far more electricity than Guyana Power & Light customers are likely to need over the coming decade. The initiative will cost more than two billion US dollars and be financed by the US oil and gas giant, ExxonMobil and others, including possibly the US Export-Import (Ex-Im) Bank.
Ali told the conference that based on the interest in the project “by investors, we are already seeing that the second phase of gas coming in would have to support a second power plant.
“That is based on just the interest in manufacturing, in industrial development, in agro-processing. The growth in demand of power is going to be enormous because we are going to propel that growth by the fiscal incentive regime and the investment drive we are going to push forward for manufacturing, industrial development and agro-processing”.
Ali told delegates that one of the benefits of the pipeline is the production of at least 4,000 barrels of propane gas daily and given Guyana’s daily consumption is 800 barrels per day, it would mean exporting the commodity to neighbouring countries such as the Dominican Republic and Brazil.
“We are now building out the road to northern Brazil…all of that investment we are already making so that market becomes immediately available,” he said, noting that at full capacity, Guyana is expected to produce 10,000 barrels of propane gas daily.
“That means for us even with a growth in our demand, we will have 9,000 barrels a day ready for export,” he said, adding “this translates to us being able to fulfil to a large extent all of CARICOM needs…
“This is the link between investment. So when people ask why build roads why build bridges, this is the economic link that it creates. If we don’t have it, we will sit on 9,000 barrels of propane gas and it can’t hatch,” he said sarcastically wondering why experts question the investments in roads and bridges.
“This is the critical link for the opportunities it opens up for our country,” Ali said, noting that increase in job opportunities in many countries in the region.
“I want to reiterate my position to you today that development in Guyana, especially in the energy sector, must and will benefit the region,” Ali said, adding “we are now working on the overall gas strategy.
“The way we see this gas development unfolding is through which it will be highly integrated into the investment and it will be an important pollster for the investment in the deep water port and the connection to northern Brazil.
“That will open tremendous opportunity for transport, logistics for every conceivable stream of cargo,” he said, adding that this would be of tremendous benefit to CARICOM countries as well.
Ali told the Energy Conference and Supply Chain Expo, “I don’t think I have to go over the story of oil, you guys have the numbers, the only thing I could tell you the numbers are growing…and oil and gas are here for pretty sustained period.
“The story is unfolding, the story is getting much more complex, but very very much more beautiful as we speak,” Ali said, noting that the policy shift will allow for Guyana’s greater participation in food security as well as exporting products such as bauxite in collaboration with Suriname to other countries.
(Source: CMC)
