Gas to shore will be ‘critical’ for Guyana

Landing natural gas onshore Guyana from the build-out of the country’s offshore hydrocarbons resources will be critical for the nation’s sustainable economic development, according to Edwin Callender of Callender Law Firm (CLF).

“Besides electricity generation and direct local industrial, commercial, and residential consumption, Guyana’s natural gas opportunity is a blank slate with virtually unbounded potential,” the lawyer told BNamericas.

CLF is a Texas and New York-based law practice with an office in Guyana that focuses on energy and oil and gas.

In recent days, Mark Bynoe, director of Guyana’s energy department, refloated plans to bring gas to the continent, but said in-depth studies are required, in particular those related to demand.

Bynoe said the initiative was “well advanced” and that talks were underway with Guyana Power and Light and the public infrastructure ministry, among other stakeholders.

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Callender, however, says advancement will hinge on several factors, starting with a clear, integrated and long-term strategic energy plan.

The lawyer also sees the need for proactive engagement with global energy demand consumers which would generate LNG contracts and facilitate LNG project viability.

In addition, stakeholders along the natural gas value chain, from engineering and construction companies to operators and developers of pipelines and processing plants, as well as marketers, need to be approached, said Callender.

Another essential area for Callender is the development and implementation of an appropriate legal and regulatory framework, and policies that facilitate responsible, accountable, efficient, and transparent management of the oil and gas industry to ensure that benefits of natural resource exploitation reach the Guyanese people.

NATURAL RESOURCE FUND

Meanwhile, Guyana’s finance ministry reported that the Natural Resource Fund (NRF) was credited with US$4.92mn on April 30 that corresponds to the royalty payment for oil produced and sold from the Stabroek offshore block in the first quarter.

The ministry said that 5.03Mb were produced and sold from the acreage in 1Q20 and the government was entitled to 2% of this amount under the block’s petroleum agreement.

The NRF account statement for April is available here and the Stabroek block royalty statement for 1Q20 at this link.