Dear Editor,
There are many local and international conversations occurring daily about Guyana’s oil resource, and the potential transformation of the country and people, but equally important is our natural gas and the intended gas to shore project, which can be a game-changer for the country, in providing a reliable and affordable source of energy for domestic consumption and facilitating other industries’ growth. Editor, gas-to-energy has the potential to help eliminate the country’s reliance on imported diesel and other fossil fuels, which are expensive, and its production emits greenhouse gases that contribute to global warming. Gas-to-energy can generate significant revenue opportunities, boost economic growth, and make Guyana a major player on the South American continent and within CARICOM. Editor, one advantage of Gas-to-energy is the provision of reliable power supply, and a possible end to frequent blackouts. This project may ensure a steady, cost-effective, hence “cheaper”, power supply for consumers. Guyana currently obtains most of its power from expensive diesel generators, which are unreliable and costly, resulting in constant load shedding and fluctuations in the cost of energy that has long constrained economic development resulting in significant costs to small businesses, industries, and ordinary people.
The ready access to a reliable, constant energy supply will allow for new industries, maintain existing ones while attracting foreign direct investments. The abundance of affordable, reliable energy will enable the country to aggregate its service and manufacturing industries cost-effectively. For example, electric power is necessary in the mining industry, manufacturing industry, and transportation sector. Making manufacturing more cost-effective will aid in the creation of permanent jobs for our people. Constant and reliable power facilitates a more efficient electric transportation system thereby reducing the sector’s overall operating cost in a cleaner environment. Reliable power supply will facilitate the food, agriculture, health and healthcare sectors where temperature-controlled storage is essential, and for hospitals that require uninterrupted power supply. Providing affordable and reliable energy attracts foreign investments, creating job opportunities while generating income for the country’s GDP. Further, the Gas-to-energy project will increase Guyana’s revenue-generation capacity by leveraging its natural gas reserves to produce petrochemicals and other industrial products. The planned expansion of power production capacity will create excess gas, which we can partner with local and foreign companies to commercialize products.
Products such as Nitrogen Fertilizers, is one such that can be used to establish a nitrogen plant. Can you imagine how impactful this will be for local farmers and the agricultural sector, bringing Guyana closer to becoming the food basket of CARICOM? Further, a methanol production plant – with a renewable chemical base which can be synthesized from skid-mounted methanol plants, providing a good yield of chemicals such as Formalin, when combined with methanol can be converted into many other derivatives, including the use of formaldehyde as a disinfectant and in the production of paints, all of which can be produced and sold to our neighbours. Another is Liquefied Natural gas (LNG). Excess gas produced can be liquefied and exported, providing additional revenue. Guyana can tap into the growing demand for LNG in the emerging economies of Asia and regional markets such as North America. Editor, Guyana is well placed to provide energy security for the Caribbean community, considering its proximity to other CARICOM member states. Gas can be exported to Caribbean states. For instance, the Liquefied Petroleum Gas (LPG) market is largely underserved in CARICOM countries, and gas will go a long way to supplement current production.
Editor, the government has already established partnerships with Brazil, which should be extended with pipelines planted to transport natural gas eventually to the South American behemoth. Editor, this project coupled with the inputs of the main opposition, civil society and the private sector can aid Guyana and its people to be well positioned to be not just be a major beneficiary but a significant energy player in other parts of the world.
Sincerely,
Hon. Jermaine Figueira, MP
