TechnipFMC has been awarded a significant contract by ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, for the Gas to Energy Project in Guyana, Business Wire reported yesterday.
It said that subject to final project sanction, TechnipFMC will provide engineering, procurement, construction and installation of subsea risers and pipelines. It was another sign that ExxonMobil and the Guyana Government are accelerating plans for the gas to energy project.
Business Wire said that the project will connect the production from Liza Destiny and Unity back to shore, delivering associated gas from the field to a gas-fired power plant that will supply electricity to the community.
Jonathan Landes, President, Subsea at TechnipFMC, commented: “The Gas to Energy Project is another example of how we are helping deliver the energy the world needs, and we are thrilled to be supporting another project in Guyana. We remain proud of our dedicated Guyanese employees and are committed to the continued development and expansion of local capabilities.”
Business Wire said that TechnipFMC currently employs more than 85 Guyanese, and expects to continue to hire and train additional local staff in support of this award.
For TechnipFMC, a “significant” contract is between US$75 million and US$250 million; the full contract award will not be included in inbound orders until the project receives final investment decision and government approvals.
The award to Technip comes on the heels of another by ExxonMobil.
On Wednesday, the Subsea 7 and Van Oord consortium announced that it has received a “substantial” contract from ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL) for the gas-to-shore project. Subsea 7 said that it considers a “substantial” contract to be in the vicinity of US$150–300 million.
The company said that the scope of the contract covers the project management, engineering, and installation of approximately 190 kilometres of pipeline, with an associated shallow water portion and onshore approach making landfall to the west of the Demerara River, along the coast of Guyana.
The pipeline is expected to land at Crane/Nouvelle Flanders, West Coast Demerara and make its way to Wales on the West Bank of Demerara. The project will involve capturing associated gas produced from crude oil production operations on the Liza Phase 1 (Destiny) and Liza Phase 2 (Unity) Floating, Production, Storage, and Offloading (FPSO) vessels.
The project is pegged at US$1.3 billion and the government hopes it will lead to vastly lower energy costs that would enable a spurt in manufacturing. However, there have been doubts over the country’s execution capacity and whether a feasibility study has been done for this massive project which would be the biggest in the country’s history.
