-company just one year old, head formerly worked with Exxon
Government yesterday defended its decision to select the less-than-one-year-old Fulcrum LNG Inc company headed by ExxonMobil’s former Vice President of LNG Market Development, Jesus Bronchalo, who worked here up to last year, insisting procurement procedures were above board.
“Fulcrum LNG, a US-based company, was deemed the most responsive compliant bidder and ranked No.1, followed by CNOOC Power and Gas Group, ranked No. 2, and a consortium of local and international companies which were ranked No. 3,” the statement said.
“As such, Fulcrum LNG will be supporting the government and the Stabroek Block operator, ExxonMobil Guyana, to utilise the non-associated gas – serving as an independent development,” it added.
It is unclear how a company just one year old could be selected ahead of others with experience.
President Irfaan Ali on Thursday announced that the company was selected to monetize this country’s natural gas resources. Bronchalo, who once held a number of positions at ExxonMobil since 2004, including serving as its representative on the Guyana Extractive Industries Transparency Initiative (GY-EITI) Board, three days ago announced his new role. “I’m happy to share that I’m starting a new position as Founder & CEO at Fulcrum LNG Inc.” he wrote on LinkedIn.
That position will see him work alongside ExxonMobil and government to determine what are the best financial decisions for this country’s natural gas. Given his previous association with ExxonMobil there are concerns that there won’t be sufficient distance to ensure that the country’s interest is the number one priority for Fulcrum.
Fulcrum LLC Inc was registered in the tax-free business state of Nevada in the USA on July 31, 2023, with NV20232857050 as its business registration number and an address of 937 Tahoe Blvd, Suite 130B, Incline Village, 89451-9462.
“I am delighted and honored that Fulcrum LNG has been selected by the Government of Guyana to design, finance, construct, and operate the required gas infrastructure to provide gas monetization solutions and accelerate upstream gas developments in Guyana,” Bronchalo wrote on his LinkedIn page following President Irfaan Ali’s announcement last week.
“A key element of our infrastructure solution is a gas processing unit and a modular, scalable, facility to produce Liquefied Natural Gas (LNG) and NGLs/LPGs for Guyana as well as regional and global markets. We have partnered with some of the industry’s leading global firms to deploy the most advanced technologies and sustainable solutions,” he added.
Bronchalo described himself as an energy executive with over 20 years of experience and multiple leadership positions, who is “passionate about energy, energy transition and sustainability, leadership, strategic thinking, diversity and inclusion, and high performing organizations.”
He stated that he joined ExxonMobil in May of 2004 and worked in various positions for that company that included Commercial and Strategy Director, Vice President LNG Origination, Portfolio Development and Strategy, Vice President, and Chief Commercial Officer here for Esso Exploration Production Limited now ExxonMobil Guyana. He also served for four months as Senior Vice President Business Development Low Carbon Solutions Asia Pacific.
While working here, Bronchalo was also ExxonMobil’s representative on the 12-member (GY-EITI) Board’s Multi-Stakeholder Group (MSG) which had been appointed in 2021.
Government yesterday defended the decision, as it pointed out it was one where not only the procurement award was above board but in line with its plans to develop this country’s natural gas resources.
A statement from the Ministry of Natural Resources asserted that government has “consistently made it clear publicly that one of our priorities in the oil and gas sector is the development of our country’s gas resources.”
Assuming
“As a result, and immediately after assuming office in August 2020, work started on the gas-to-shore project which is set to cut electricity costs by at least 50% and stimulate massive economic activities, especially in the industrial and manufacturing sectors upon completion. Recognizing that the gas-to-shore project will utilize a relatively modest amount of gas and is geared more towards power generation, plans to utilize and monetize our total reserves of associated gas were discussed on several occasions with ExxonMobil and its partners. These discussions were guided by our government’s aim to generate additional revenue for the country and create opportunities for Guyanese, through upstream and downstream development of infrastructure to harness our associated gas reserves,” it added.
According to the statement, after many discussions with the Stabroek block operator, and realising that the development of the gas resource was not an immediate priority for the company, Guyana decided to seek a capable independent third-party operator to either work with ExxonMobil or carry out this activity on its own.
“Consequently, a decision was taken earlier this year to advertise locally and internationally through a Request for Bids (RFB) for the Design, Finance, Construction, and Operation of essential gas infrastructure to support upstream developments in Guyana. Proposals were invited from qualified developers for comprehensive solutions to develop the required gas infrastructure, which includes the necessary pipelines to connect and monetize upstream gas,” the statement said.
It pointed out that “an independent and technically competent evaluation team” was then established by the Ministry of Natural Resources “to conduct a detailed and robust evaluation of all 17 proposals based on the technical and administrative submissions received.”
It said that Fulcrum LNG was deemed most responsive.
Government said that Fulcrum LNG’s submission was very detailed and comprehensive, and outlined a structured approach to gas development; “hence the evaluators were satisfied based on the submission of its competency which resulted in the company being ranked No. 1.”
“In summary, the Fulcrum LNG proposal was considered by the evaluators as the most comprehensive and technically sound proposal.”
The statement noted that following the evaluation and selection, “the evaluation report was then submitted to the cabinet with no objection. The Cabinet deliberated and examined the report and granted it’s no-objection for Fulcrum LNG to be engaged.”
And following the Cabinet’s consideration of the matter, the Ministry of Natural Resources said that it has engaged the company along with ExxonMobil to begin the process. “These discussions are at a preliminary stage and are ongoing,” the ministry said.
The following table shows the names of the companies, according to the National Procurement and Tender Administration Board, which submitted proposals on February 27 of this year to the Ministry of Natural Resources’ call for the Design, Finance, Construction and Operation of Required Gas Infrastructure to Support Upstream Development.
According to government, 52 bidders registered but only 17 of those submitted proposals.
Name of Company
Andalusian Energy, ManEnergy Solutions,
Alf Co Guyana
Venture Global LNG Inc.
Great Eastern Resources
Rainbow Global Group Company
Sol Guyana Inc.
Amandi Investment Ltd
Bridge Clean Fuels ,ARC Energy , Barson Strat
Guygas Inc.
Fulcrum LNG Inc.
Massy Gas Products Guyana
Helios Investment Partners
Lindsayca CH4 Guyana
Energy Transfer International Holdings LLC
China Blue Chemical Ltd
CNOOC Gas and Power Group
Atlantic Margin Island Partner Inc.
