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Lisa 2 oil production suspended to allow gas pipeline connection
Guyana’s second FPSO “Liza Unity”
…project documents still to be made public
Kaieteur News – ExxonMobil Guyana Limited (EMGL) has suspended oil production from its second floating production storage and offloading vessel (FPSO), Liza Unity, in the country’s Stabroek Block to facilitate the connection of infrastructure to transport natural gas to onshore.
The Government of Guyana (GoG) plans to use about 50 million standard cubic feet per day (MSCFD) of natural gas to generate electricity, providing 300 MW of power to the national grid. The gas will be piped to shore through two projects, Liza One and Liza Two.
ExxonMobil is constructing a 12-inch pipeline that will be about 220 kilometers long, stretching from the offshore FPSO to the West Bank Demerara development area in Wales. The company’s media advisor, Kwesi Isles, told Kaieteur News In invited comments, it was stated that repair work on the Liza Unity ship began in the first week of July.
He said the company is nearing completion of activities supporting the FPSO. Notably, ExxonMobil expects to conduct further debottlenecking on the Liza Unity FPSO during the outage to further increase production. Isles could not confirm whether these activities are ongoing or completed.
The media adviser said only that “activities scheduled during the shutdown are proceeding as planned and our goal is to resume production as soon as possible.”
After completing the works on the Liza Unity FPSO, ExxonMobil will carry out similar works to connect the pipelines on the Liza Destiny platform.
Each vessel is expected to halt production activities for two weeks to allow the pipelines to be connected.
Friedrich Krispin, EMGL’s GTE Project Manager, previously explained the process to Kaieteur News. “We will start the process in early July and it will take about a few weeks per FPSO, with some time in between to transfer all the equipment from one FPSO to the other. In parallel, we are also building the subsea structure at the bottom of the FPSO where all the two lines will be connected together and connected to the pipeline that will bring the gas to shore,” he said.
Crispin said the offshore work is expected to be completed in the first half of August. Oil production will continue during most of the connection phase, but the facility will be shut down for about 10 days, project managers said.
“What happens is you need a period of time to ramp down production and then there is a brief period, typically about 10 days per FPSO, where production is completely shut down,” he said.
Even as construction of ExxonMobil’s pipeline moves forward, Guyana’s government has yet to make public key documents related to the massive natural gas project under development.
It is noteworthy that the GTE project is the largest single financial project in Guyana’s history. Despite this, the project has yet to undergo a feasibility study to prove the viability of the plan.
The pipeline is expected to cost about $1 billion, but no final investment decision has been made so far. In addition, the natural gas liquefaction facility and power plant are expected to cost $759 million.
The government is upgrading the transmission and distribution network to support the project and is responsible for compensating people who own land along the pipeline route. It will also build a new control center to manage the power project, which will increase the cost of the gas project.
Despite opposition and media efforts to push the National Assembly to reach an agreement on the GTE project, the government continues to delay the release of documents, raising further concerns about the project.
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