The two United States companies that have been selected to build the Wales gas to shore plant – CH4 Guyana Inc and Lindsayca Inc – have teamed up with SOL Guyana to bid to set up an oil refinery here.
Competing against the partnership of SOL Guyana Inc in collaboration with CH4 Guyana Inc and Lindsayca Inc, are three other companies and on Tuesday they all submitted tenders to the request for proposals that government had issued in October of this year.
Below are the names of the four companies that submitted proposals.
Freight N Cargo Logistics Inc is a New York City-based company and it representative, Anthony Persaud, told the Stabroek News that while his company does not have experience in building refineries, it has partnered with “a few companies” which bring their requisite expertise to produce a product that “meets and exceeds” government’s expectations.
The Berbice Green Refining Inc joint venture has pooled companies which also have specialty areas. ARC Energy states that it “provides products and technical service to the Energy and Manufacturing industries. Providing quick response with the highest service levels is our goal. Our footprint provides capabilities and resources to meet our customers’ needs. Our growth comes from utilizing the latest technology engineering products, equipment, materials and services.”
Polaris Engineering’s website explains that the company “has been operating for over 20 years in the Industrial Hub of Southwest Louisiana. We are a full-service engineering company providing services mainly to the refining and petrochemical industries found around the world.”
“Our company was founded and prospered by offering process engineering consulting services. We have built success by helping our clients find innovative and cost-effective process solutions to their operating and debottlenecking challenges. This process expertise is still a source of pride for our company today.”
DRL Engineering boasts that it is a full-scale engineering company based in Houston, Texas with vast experience around the world in building infrastructure, among them oil refineries. “DRL is currently designing and building several oil refineries as Owner Project Management and Engineering. Our designs are based on licensed technology from Sulzer for crude oil fractionation, light-ends fractionation, jet treatment and isomerization.”
The company states that it also has an alliance with VEPIC Engineering which has a long history in refining with PDVSA and provides competitive engineering design support to DRL for medium 100-150kbd oil refineries and small 5 to 10 kpb modular units.
Government in October invited proposals for the design, finance and construction of a 30,000 barrel per-day oil refinery to be built in the vicinity of Crab Island, in Berbice, in which it will have no ownership or investment interest.
Energy secure
The move came shortly after President Irfaan Ali announced that the government would be looking at the construction of an oil refinery in an effort to become more energy secure. The President again spoke about the project when he delivered the feature address at the opening of the Berbice Expo and Trade Fair later in the month.
Ali has also touted the opportunities which the refinery will create for transport and logistics, the services industry, the construction industry, and the rental industry, saying that it will be “enormous and will bring tremendous benefits” to the people of Berbice.
The Request for Proposals (RFP), had pointed out that that the proposed project is in response to numerous expressions of interest that the government has received.
Canadian company, CGX Energy Inc, has proposed to construct a deep-water port facility adjacent to Crab Island. The deep water port proposed by CGX is to be constructed aback of Seawell Village, Corentyne, Berbice and the civil works are being carried out by the company’s subsidiary, Grand Canal Industrial Estates Inc (CGIE). The deep water port facility is estimated to cost a total of US$80 million.
CGIE had acquired a lease from government for 54.96 acres of the Berbice riverfront lands on August 10, 2012 for a period of 50 years.
The RFP informed potential investors that the government is intent on starting construction in the first half of 2023, with a completion date no later than two years after the commencement of construction.
The government said that it will be providing the successful party with “adequate land at the mouth of the Berbice River for the venture [estimated to be 30 acres]; generous fiscal incentives for the project including a 10-year tax holiday; supply of feedstock [oil] from the GoG share of profit oil at market prices; and access to the domestic market for sale of refined products [if desired].”
The RFP made it clear that the project is to be wholly financed and owned by the private sector, adding that government will not have any ownership or investment interest.
The interested party is expected to show their capability and credibility to execute a project of this nature. They are required to submit a detailed track record of similar projects completed, showing roles played in design, financing, and construction, date of project start, date of completion, capacity (b/d), and total budget; evidence of financial ability, including last 3 years of audited financial statements, and details/evidence of financing for this project from own resources or third-party resources.
Additionally, the government is requesting that interested parties submit clear written agreements between their partners listing a breakdown of proposed shareholding, lead investors/shareholders and if a consortium, evidence of a legally binding consortium agreement for this project.
The RFP had informed that a site plan for the land required should be submitted. The plan should include utilization and layout of facilities, including storage and connections to sea or river to allow loading/offloading of crude and finished products. The plan should also show connections to existing road infrastructure for the movement of tankers and other vehicles, to and from the site.
Parties were asked to confirm if a Special Purpose Company (SPC) will be created in Guyana as well as show the key contracts of the relevant parties. They are also required to provide a list of all permits, licences and permissions required by law along with the timeframe for the start and completion of these processes.
Additionally, a list of draft legal agreements, proposed capital structure for financing and details of proposed local content, including sub-contractors, and percentage of project costs that will be locally sourced will be required.
Government said that the response to the RFP will be used to determine a capable party to execute the project within the required timeframe.
