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Expert: Guyana gas-to-shore project must be affordable

January 07, 2021

Kaieteur News:

In its bid to pursue a gas-to-shore project, the Government of Guyana must first ensure that the venture is affordable says Chatham House Associate Fellow, Dr. Valerie Marcel. During an exclusive interview with other industry stakeholders on Kaieteur Radio’s programme, Guyana’s Oil and You, Dr. Marcel said it is clear from the inception that Guyana did not expect to find as much gas as it did in the Stabroek Block hence there is a common interest among ExxonMobil and its partners along with the government to bring the gas to shore. The industry expert stressed, however, that the big question that has to be answered relates to the affordability of bringing the substantial resource to shore and whether Guyana can have all the relevant mechanisms in place to ensure the project is efficient. 

Tom Sanzillo, Director of financial analysis at the Institute for Energy Economics and Financial Analysis (IEEFA), was quick to agree with Janki as he said Guyana has no evidence to show that it can achieve a financially sound arrangement. In fact, Sanzillo said that the lopsided oil deal for the Stabroek Block deal is testimony to the fact that Guyana is incapable of negotiating the best prices for the pipeline and other infrastructure for the gas to shore project.

The financial expert said that Guyana ought to stay clear of the project or else it risks jumping off the edge of a most dangerous precipice. 

[Kiana Wilburg]

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