As government continues to defend the choice of the less-than-one-year-old Fulcrum LNG Inc for a possibly lucrative gas development deal, more questions are being raised about the evaluation process as some very experienced companies failed to get the nod.
There has also been major controversy over the fact that Fulcrum is headed by ExxonMobil’s former Vice President of LNG Market Development, Jesus Bronchalo. It raises concerns that ExxonMobil may have undue influence on matters related to the utilization of non-associated gas from its offshore wells.
Following the announcement of the company’s contract, Vice President Bharrat Jagdeo said that government saw no conflict of interest in Fulcrum getting the award because Bronchalo was known to be part of the company from the onset.
Last week, he said that government still believes that Fulcrum’s proposal was the best to monetize gas here and supports the evaluators’ decision as “that’s what we’re looking for.”
“There is nothing I found wrong with the evaluation of the bids and I don’t see anything that has come out, in any major way, that’s wrong, except for that he worked at one time with Exxon,” he said, noting that many people in oil started their careers with the US oil major.
Jagdeo has said that if Bronchalo has proprietary information about ExxonMobil, it would be a gain for government and the conflict would be from ExxonMobil’s end and not Guyana. “I would anticipate if he has knowledge of that information, it helps us to move the process faster,” he reasoned.
He said that government had enquired if Bronchalo was still in the employ of ExxonMobil and was told that he had resigned and that the US oil major saw no conflict from their end either.
“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,” a statement from government had 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.
According to government, 52 bidders registered but only 17 of those submitted proposals for the contract for the Design, Finance, Construction and Operation of Required Gas Infrastructure to Support Upstream Development in Guyana.
As reported by Stabroek News on June 28, the names of the companies were: Andalusian Energy, ManEnergy Solu-tions, 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, and Atlantic Margin Island Partner Inc.
The companies and a summary of their portfolios and prior works that this newspaper found are listed below.
Andalusian Energy and Mann Energy Solutions
From the United States was Andalusian Energy which partnered with the German Mann
“Andalusian Energy is optimizing the safe delivery of affordable compressed natural gas with its agile, patented technology to underserved markets in Central America and the Caribbean, strengthening regional economies and power grids that build and enable higher standards of living, better jobs and responsible industry growth. In essence, Andalusian is creating an affordable and efficient natural gas virtual pipeline, initially providing continuous flow from Louisiana’s Gateway Port to Puerto Cortes in Honduras with additional destinations planned for Central America, the Caribbean, and Mexico,” it profile states.
The company posits that its “business is affordable compressed natural gas. Our commitment is safety. Our passion is driving growth and prosperity for the countries we serve.”
Andalusian Energy said that it plans to launch compressed natural gas (CNG) shipping operations from next year, from the port of Mobile in the US, to Puerto Cortes in Honduras, and Puerto Barrios in Guatemala. It added that according to Forbes Magazine, the port of Mobile is second fastest-growing port in the United States, it stated.
MAN Energy Solutions is better known to Guyanese as the Germany headquartered company which manufactured the problematic gas compressor unit for ExxonMobil’s first FPSO -Liza Destiny- which had long periods of flaring. ExxonMobil had experienced major problems with the gas compression equipment on the Liza Destiny and this had led to environmentally damaging gas flaring. The problems developed shortly after production began in December of 2019.
“Mann and the former MAN Group as a whole can be traced back to two business startups. The initial foundation stone was laid in 1758 with the establishment of the St Antony ironworks, the nucleus of the iron and steel industry in the Ruhr region. This developed into Gutehoffnungshütte (GHH for short), a stock corporation for mining and metallurgical operations in Oberhausen in 1873, following numerous mergers with other steelworks,” the company informs as part of its history.
And now MAN Energy Solutions said that it “has set itself the goal of generating at least half of its revenue from product solutions for the decarbonization of industry and society by 2030. The decarbonization strategy will be implemented by offering solutions for hydrogen electrolysis (through the acquisition of H-TEC SYSTEMS in 2021) and for carbon capture, utilisation and storage, heat pumps for use in the energy and industrial sectors, and large engines that can run on environmentally friendly fuels such as methanol or ammonia. In addition, a large part of the existing engine fleet can also be converted to alternative fuel types with the help of so-called retrofits.”
Venture Global LNG
With a contact address of 1001 19th Street North, Suite 1500, Arlington, Virginia, USA, Venture Global LNG, says it has offices around the world, including Tokyo, London, Houston, Singapore, and Washington DC. According to the company website, “Venture Global has a global presence so that we can best serve our customers. Our goal is to help our customers lower their portfolio average price by passing on our cost saving.”
The website adds, “We are a long-term, low-cost provider of American-produced liquefied natural gas. Our four Louisiana-based export projects service the global demand for North American natural gas and support the long-term development of clean and reliable North American energy supplies.”
Great Eastern Resources Drilling & Blasting
Located in Atlantic Canada, Great Eastern Resources Drilling states that it provides, provides drilling and blasting in the quarry and construction industry across Nova Scotia, New Brunswick, and Newfoundland.
“The company was founded by owner Kevin Lloyd, who has spent 12 years working across Canada as an underground Longhole blaster, lead blaster and blasting supervisor. Lloyd started his blasting career in Newfoundland as a blaster helper, and successfully advanced to become a blasting supervisor. He has worked for several large mining companies in Newfoundland, Ontario, Saskatchewan, Yellowknife and British Columbia, predominantly in gold mining.”
Rainbow Global Group Company
Rainbow Global Group Company lists an address in Bangkok, Thailand, with a principal named Binbin Ren.
Sol Guyana Inc
Supplying fuel to the Shell service stations here, and with its head office at Lot BB Rome, Agricola, East Bank Demerara, Sol Guyana Inc is a member of the Sol Group, which is a member of the Parkland family which says it is the leading supplier of petroleum-based products and energy solutions in the Caribbean, as well as Central and South America.
“Twenty-three territories, four languages, countless regional dialects and accents. One focus: You! We are a family of engineers, technicians, customer service representatives, and solution based innovators, dedicated to fuelling life, work and play in the Caribbean Basin. Our fuels, lubricants, LPG products, and extensive service station network, provide the energy that keeps the heart of our region beating. We are the largest petroleum marketing company in the region and we are committed to supporting and empowering the communities in which we operate. With operations spanning across twenty-three territories, our highly qualified team reflects the talent, spirit and diversity of the region. We serve a wide range of commercial customers who are involved in shipping, luxury boating, aviation, mining, trucking and fleet operations, as well as families and individuals – hard working men and women who need a reliable partner to fuel their vehicles, homes and lives. We are happy to be a part of your family,” its profile states.
Amandi Investment Ltd
Amandi Investment Ltd has as its key principal, Yeheskel Makmal, and an address at 226 Osibisa Close, Accra, Ghana in West Africa.
On its homepage, it reads, “Amandi has been successfully delivering large-scale construction projects in Ghana for over two decades. From our base in Accra, we provide technically advanced civil and marine engineering solutions for a range of commercial and government clients. The significant rate at which Amandi has grown over the last twenty years is the result of strong leadership and clear vision. An unrelenting focus on service delivery, maintaining quality standards and keeping our promises has also expanded our customer base significantly during this time. Today, Amandi serves many leading Ghanaian and West African companies and government departments, including several international organizations operating in the region. Amandi’s competitive advantage lies in our ability to take up a wide range complex projects. Our technical know-how, our years of experience and our highly qualified team of employees enables us to produce the best results.”
Bridge Clean Fuels, ARC Energy, Barson Strat
Bridge Clean Fuels gives its address as 600 Travis Street, Suite 5050, Houston, Texas 77002, United States. The company said it “is committed to optimizing earth’s resources through responsible energy solutions. We are deeply passionate about enhancing energy security and improving the environment for our communities. With a dedicated mission to process stranded gas on a global scale, Bridge Clean Fuels emerges as a pivotal player in the ongoing battle to protect our environment profitably. By harnessing innovative technology and expertise, we mitigate the inefficiency of stranded gas and transform it into valuable by-products, such as gasoline and oil condensate.”
ARC Energy states that it specializes “in providing the oil and gas industry with the highest quality equipment delivered with the technical expertise and operational support necessary for our customers’ needs.”
Massy Gas Products Guyana
Massy Gas Products (Guyana) Ltd on its website says that it has won a number of awards. “These include the Platinum manufacturer award for quality in 2017, the President’s award in 2015, and Longevity award in 2014. MGPGL [Massy Gas Products (Guyana) Ltd] also won honourable mention for Community Investment in the year 2015 & 2016. This Annual Award for Business Excellence recognizes and highlights best practices, unique skills, expertise and products of the private sector that contribute to the national response to health awareness in the workplace and in the community through various partnerships. The award is judged in five categories: Workplace Programme, Outstanding Performance by A Peer Educator, Core Competency, Community Investment, and Leadership”
The company says that it has “successfully maintained our status as an ISO Certified Company since 1998, with our current certification being compliant to the ISO 9001:2015 Standard. Our goal is to continuously provide products and services of the highest quality to our customers, this commitment is lived through our Quality Policy C.L.E.A.NUnderwriters Laboratories (DQS Inc.) is a renowned International Management Certification body with 57,000 certified locations in more than 130 countries.”
Guygas Inc
Guygas Inc says that it was founded in 2004 and is a 100-per cent Guyanese-owned family business and the only Guyanese company in Guyana that bottles and distributes cooking gas (LPG).
“Guygas is proud to say that it has been essential for safeguarding Guyanese consumers from unnecessary and unjustifiable pricing strategies employed by its foreign-owned competitors for over a decade. While providing an alternative to consumers and businesses, it has maintained an unblemished safety record and product quality second to none, resulting in its AMERICAN STANDARDS GUYANESE VALUE,’ the company’s profile states.
Helios
Helios was founded in 2004 it says “to focus exclusively on private investment in Africa. Since its establishment, Helios has raised three private equity funds. Helios also took over the Modern Africa Fund in 2004, rationalizing and fully exiting the portfolio by 2007.”
The company states that in 2015, “Helios established Helios Credit, a dedicated credit platform which invests and manages the TriLinc Global Impact Fund’s sub-Saharan term loan portfolio. In 2020, a transaction between Helios Holdings Limited and Fairfax Africa Holdings Corporation created the premier pan Africa-focused alternative investment manager, Helios Fairfax Partners.”
“Helios’ diverse LP base comprises a broad range of the world’s leading investors, including sovereign wealth funds, corporate and public pension funds, endowments and foundations, funds of funds, family offices and development finance institutions across the US, Europe, Asia and Africa,” it adds.
Lindsayca CH4 Guyana
This company is currently building the gas-to energy facility over at Wales on the West Bank of Demerara, and has taken government to arbitration over a US50M claim it says it is owed for works.
“LNDCH4 Guyana emerges as a unified entity symbolizing the collaborative strength of Lindsayca Inc. and CH4 Systems, strategically positioning us to seize opportunities in Guyana’s dynamic energy sector. Our partnership focuses on driving the country’s growth through the development of the Gas-to-Energy Project, laying the groundwork for innovative and sustainable energy solutions that will shape Guyana’s future,” it states on it LinkedIn Profile.
Energy Transfer International Holdings LLC
Records show this company as a Delaware limited liability company. This newspaper found other companies with similar names or derivatives but it is unclear if they are linked.
China BlueChemical Limited
China BlueChemical Ltd. is a state-owned Chinese company which specialises in producing fertilizers and is under the umbrella of Stabroek Block partner CNOOC. On its profile, it states that it is “a modern large-scale enterprise under China National Offshore Oil Corporation (“CNOOC”)” and “mainly engages in the deep processing of natural gas and the development, production and sales of chemical fertilizers and chemical products.”
“Established in July 2000, China BlueChem was transformed into a joint stock company in April 2006, with headquarters in Beijing and production units in Hainan, Inner Mongolia, Heilongjiang, etc. Its total designed annual production capacity amounts to 1,800,000 tonnes of urea, 1,000,000 tonnes of phosphate and compound fertilisers, 1,400,000 tonnes of methanol, and 270,000 tonnes of acrylonitrile and relating products. After more than 20 years of efforts, China BlueChem has grown into one of the largest listed companies in China in terms of chemical fertilizer and methanol production, ranking 12th in the country in terms of production volume, and has been awarded the title of the leading benchmark enterprise in energy efficiency in the synthetic ammonia and methanol industry for ten consecutive years.”
CNOOC Gas & Power Group Co. Ltd.
This is a Chinese government-owned company which offers liquefied natural gas supply and operation services. The company also provides related technology development, petrochemical engineering contracting, pipeline management, and power generation service, according to Bloomberg.
It too is a part of the China National Offshore Oil Corporation, the largest offshore oil and gas producer in China, which was established as a state-owned mega-company with the approval of the State Council on February 15, 1982. CNOOC is also a partners in the offshore Stabroek Block.
