Minister of Natural Resources, Vickram Bharrat, says the associated gas from ExxonMobil Guyana Limited’s (EMGL) seventh development in the Stabroek Block, the Hammerhead project, will be used to fill the pipeline that will supply the Wales Gas-to-Energy (GTE) project.
During an interview on the Starting Point Podcast- The Oil and Gas Edition, Minister Bharrat explained that natural gas from Hammerhead will help fill the 12-inch pipeline that was constructed by Exxon to transport gas from the Stabroek Block to the GTE site at West Bank Demerara.
Hammerhead gas will supplement supplies from the Liza One and Liza Two oilfields, which will be used for the project’s initial startup. Minister Bharrat outlined that gas from Liza One and Liza Two alone would not be sufficient to fill the pipeline.
“And that is why Hammerhead is so critical and important, because rather than reinjecting the gas to optimise production, that gas now would go to the Unity and the Destiny FPSOs [floating production storage and offloading vessel], and then through that pipeline, onshore to the Wales development area,” the minister noted.
The GTE project includes the pipeline, a Natural Gas Liquids (NGL) facility, and a 300-megawatt power plant. Around 50 million cubic feet of gas is expected to be converted to electricity daily. By mid-2026, the project is slated for completion, delivering on the government’s promise to reduce consumers’ electricity bills by 50%.
On Monday last, ExxonMobil received government and regulatory approval for the US$6.8 billion Hammerhead project, which is expected to achieve first oil by 2029. The development is projected to produce 150,000 barrels of oil per day (bpd), boosting Guyana’s total output to approximately 1.5 million bpd.
Further, Minister Bharrat highlighted that Hammerhead contains more gas than the other oilfields. In fact, it is capable of producing 90-95 million cubic feet of gas per day, according to the Environmental Impact Assessment (EIA).
ExxonMobil has confirmed, and the ministry’s technical team has verified, that unlike previous projects, the Hammerhead gas will not be reinjected to optimise oil production.
The minister also reiterated the government’s plan to establish a second power plant.
“The pipeline is already there, 50 million cubic per day is already available, which is enough for the first power plant, which will come on stream in a couple months from now and then, with Hammerhead being tied into that, it is guaranteed now that we will fill that pipeline over 120 million cubic per day, which will now accommodate a second power plant, another 300 megawatts of power,” Minister Bharrat stated.
Earlier this year, the government awarded a substantial contract to upgrade the transmission system that will distribute electricity from the GTE plant.
Minister Bharrat also underscored the transformative potential of the project. “I believe it in my heart, and I know it will happen that that gas-to-energy project will be the single most transformational project in the history of our country, because that project is going to touch every single Guyanese in some way or the other,” he said.
The minister further noted that the two GTE plants will meet rising electricity demand caused by new housing schemes and more Guyanese being added to the grid. Beyond power generation, he stressed that the project would provide clean, affordable electricity and create opportunities to expand Guyana’s manufacturing and industrial sectors.