Liza field natural gas to be guaranteed for 20 years under extended licence

Last Updated on Thursday, 27 April 2023, 19:16 by Denis Chabrol

Vice President Bharrat Jagdeo on Thursday said the licence for the Liza reservoir project would be extended to ensure that natural gas is available for Guyana’s gas to shore electricity and natura gas liquids plants for 20 years.

Mr Jagdeo told a news conference that the decision to extend the licence followed the completion of the field development plan for the Liza reservoir. He later explained to Demerara Waves Online News that with the current licence expires in 2037, giving the project only 12 years to produce. “We have to now extend it so that we have a minimum of 20 years of production from Liza to ensure that gas is supplied for 20 years of production minimum,” he said.

According to the Vice President, if the project expires in 12 years, there would be no gas for the electricity and natural gas liquids plants that would be built at Wales, West Bank Demerara by the American company, CH/LINDSAYCA at a cost of US$759 million.

He said government believed that it could draw down the full 130 million cubic feet of natural gas per day.

A part from the Liza to Wales gas pipeline, the Guyana government has said it is working on a natural gas strategy for overall development.