Exxon commences offshore pipeline laying for Gas-to-Energy project

Esso Exploration and Production Guyana Limited (EEPGL) has commenced pipeline laying activities in the country’s Exclusive EconomicZoneforthehighly touted Gas-to-Energy (GTE) project Thisisaccordingtoa Maritime Administration (MARAD) notice, issued by the Harbour Master (ag) on June8,2023

The notice published in thisnewspaperexplainedthat ‘Stingray’ a shallow water pipeline laying barge will be engaged in pipe laying activities, which will conclude on November 1, 2023

K a i e t e u r N e w s understands that the offshore works for the project commencedonJune1,2023

MARAD said, “The pipe layingareastretchesfromthe coast to approximately 39 nautical miles (72 2 kilometres offshore of Guyanaandcoversanareaof 65squarenauticalmiles(225 squarekilometres)”

Meanwhile, the vessels that will be involved in this aspectoftheprojectincludes:

VMI Love, Coastal, Challenger, Lead 1, Coastal Vanguard,Kamarina,CotaLa Luz, Lead Marlin, Sayan Polaris, Tamuata, Lead 2, Costal Enterprise, Morag M, Patriot,LeadershipandEllaF

T h e M a r i t i m e Department has warned mariners to operate with cautionwheninthevicinityof theprojectareaandmoreover, tostayclearofthesevessels

A source at ExxonMobil Guyana confirmed that the noticerelatestothenearshore workbeingconductedbyVan Oord, a contractor hired by the operator of the Stabroek Blocktoconducttheworks

But while Exxon steams ahead with this project, with the blessings of the Guyana government, it is presently before the Court for its 12inchpipelinethatwillbeused totransportnaturalgastothe Wales Development site, WestBankDemerara

Two citizens, Elizabeth Deane-Hughes and Vanda Radzikfiledanapplicationon March 27, 2023 in the High Court challenging the permit issued by the Environmental Protection Agency (EPA) to EEPGLforthepipeline

ExxonMobil Guyana had applied to join the matter in whichtheEPAwasthelisted respondent

Thetwocitizensarebeing represented by their lawyers, MelindaJanki,AbiolaWongInnissandJoelRoss,whoare seeking several reliefs inter aliaadeclarationtheprojectis contrarytotheenvironmental laws of Guyana The citizens are seeking an Order of Certiorari to quash the decision made by the EPAto award an Environmental

Permit to EEPGL –ExxonMobil Guyana to undertake the GTE project activities,onthegroundsinter alia that the decision was in breachoftheprovisionsofthe EnvironmentalProtectionAct (Cap 20:05), and more p a r t i c u l a r l y, t h e Environmental Protection (Authorisation)Regulations

The applicants outlined that ExxonMobil Guyana in itsapplicationtotheregulator, dated June 24, 2021 includes details of the project site, the proposedrouteofthepipeline and the areas to be used and affectedbytheproject,which includes residential properties, commercial properties and state-owned properties

Be that as it may, the applicationdidnotincludeor provide any proof of ownership, a lease or other agreement with the land ownersofthesaidarea

Notwithstanding,theEPA granted EEPGL a Permit to undertake the project on November25,2022

Subsequently, the Minister of Public Works, JuanEdghillinJanuary2023 passed various orders to acquire lands for the purpose oftheproject,pursuanttothe Acquisition of Lands for PublicPurposesAct,Chapter 62:05

The applicants are therefore seeking a declaration that the respondentactedinbreachof theEnvironmentalProtection (Authorisation) Regulations; adeclarationthatthePermitis null, void and of no legal effect with costs and such further order the Court considersjust.

In their application to the High Court, Radzik and Deane-Hughes stated that Pursuant to Regulation 17 ( 2 ) ( c ) ( i i i ) o f t h e Environmental Protection (Authorisation) Regulations, an application for an environmental authorization must contain “proof that the applicant either owns the facilityorhasaleaseorother agreement with the landowner or occupier to enable the applicant to conduct the activity without the consent of the landowner oroccupier”

It was reported that the matter is before Justice Priya Sewnarine Beharry at the GeorgetownHighCourt

The pipeline is a critical component of the GTE project that is intended to reduce the cost of electricity by 50 percent The infrastructureisbeingfunded bytheoilcompanyandwillbe repaid by Guyana via annual payments of US$55 million for 20 years Separately, the GoG is pursuing a Natural GasLiquids(NGL)facilityto treat and separate the gas, along with a 300-megawatt power plant to generate electricity to power the national grid Government intends for the project to startupbytheendofnextyear