ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL) has been given approval to flare for a third time but will have to pay US$45 per tonne of carbon dioxide equivalent.
In its August newsletter, the Environmental Protection Agency (EPA) stated that EEPGL had made applications and received approval for two separate periods of flaring for which it has made payment amounting to $400 million.
It was disclosed that EEPGL has made a third application and was given approval by the EPA for an extended flaring event. However, instead of paying US$30 per tonne of carbon dioxide equivalent (CO2e) emitted from flaring activities, the oil company will pay US$45 per tonne, and will flare no more than 6 million standard cubic feet of natural gas per day (reduced from 15 million standard cubic feet).
“The EPA will continue to work with EEPGL to reduce flaring to pilot levels,” the newsletter said.
In May, 2021, the EPA modified the Environmental Permit issued to EEPGL for the Liza Phase 1 Development Project, located within the Stabroek Block, Offshore Guyana. The EPA said its decision to modify the Permit was made against extensive flaring of natural gas at the Liza 1 project due to issues with the 3rd Stage Flash Gas Compressor (FGC) installed on the Liza Destiny Floating Production Storage and Offloading (FPSO) oil platform.
Among the new regulatory requirements for Air Quality Management, the modified Environmental Permit requires a payment of US$30 per tonne of carbon dioxide equivalent emitted as a result of flaring activities.
The modified permit requires EEPGL to apply for approval to flare at the Liza 1 Facility.
