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    TechnipFMC seals Exxon contract in Guyana

Summary

Exxon affiliate is weighing an FID on a wet gas-to-power project offshore Guyana.

by: Callum Cyrus

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Liquefied Natural Gas (LNG), News By Country

TechnipFMC seals Exxon contract in Guyana

TechnipFMC said August 1 it had secured an EPCI contract to engineer subsea risers and pipelines for a Guyanese gas-to-energy project operated by Esso Exploration and Production Guyana Ltd., an affiliate of ExxonMobil.

The contract is valued at between $75mn and $250mn. Subject to a positive FID for the project, TechnipFMC will construct pipelines to bring associated gas from the offshore Liza oilfield to a new 250MW gas, gas liquids and diesel-fired combined cycle power plant for Guyanese communities around Hermitage, part of a special economic development zone. 

Esso's Gas-to-Energy project is part of a Guyanese drive to bring gas-derived power output to above 200MW, aimed at reducing emissions and slashing electricity bills by more than half. Under current plans, Esso would launch the new infrastructure by 2024, Guyanese president Mohamed Irfaan Ali said on June 30.

Hermitage's new power plant will process up to 60,000 ft3/d of NGLs initially, rising to 120,000 ft3/d as part of an envisaged second phase. Esso's infrastructure will condition the wet gas and separate liquid hydrocarbons, with five days of energy storage to be provided. A pre-qualification tender was held for the project in January, attracting 12 bids from local, regional and international firms, according to local media.

Launched in early 2020, Liza is a deepwater oil project in Stabroek block, situated around 190km off the Guyanese coast.   It currently pumps crude and associated gas into two FPSO vessels, the Liza Unity and Liza Destiny. Unity arrived on stream in February 2022 , with a designed throughput capacity for 220,000 barrels of oil/day, and 400mn ft3/d of associated gas. Destiny has been active since Liza's launch and can handle another 170mn ft3/d of wet gas, plus 120,000 b/d of crude.

TechnipFMC currently has more than 85 Guyanese employees on its books. Following the award, the company expects to hire and train additional local staff. 

Jonathan Landes, president of subsea at TechnipFMC, said: "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.”