ADVICE TO PRESIDENT CHAN SANTOKHI ABOUT THE DEVELOPMENT OF THE GAS RESERVES
Proposal to the Government of Suriname to discuss with the Government of Guyana for the common development of the gas discoveries of both countries.
The joint-venture Total and Apache has made 4 discoveries in the offshore block 58 with about 1.5 billion of BOE. The appraisal study will be ready at the end of this year and the Final Investment Decision (FID) will be taken in the first quarter of 2022. According to the preliminary findings there is much more associated gas than can be expected.
The Government of Suriname (GoS) and TotalEnergies (TE) are planning to start the first oil production in late 2025.
The CEO of TotalEnergies, Mr. Patrick Pouyanne, has recently made the following statement in OILNOW:
“while a rapid development of Suriname resources be desirable financially, how to “valorize” the associated gas remains big questions and similar considerations offshore Guyana, a combined solution for commercializing the two countries’ gas might be appropriate”
As a Consultant for Business Development and Promoter for Foreign Direct Investments in Suriname I have made the following proposals to the GoS to solve the “big questions”:
The GoS has to take the initiative to organize as soon as possible a meeting with TE to establish the strategic policy how to move forward. This policy should be based on two tracks namely, to carry out the following projects:
- For the production of LNG for own use in the power generation engines of EBS and Stateoil company, both wholly owned by the GoS.
- For the export to Guyana, French Guiana, Brazil and other neighboring countries.
First thing to be done is to conduct a comprehensive feasibility study for using the LNG as fuel for the power generation engines in Suriname and for exporting to Guyana, French Guiana, Brazil and other neighboring countries.
For the first phase 3 projects should be carried out on the same time to meet the target year of 2025 and to secure the sales of LNG on a long term for the financial viability of the projects.
President Chandrikapersad Santokhi can make the following proposal on the summit to be held in January 2022 in Paramaribo to his colleagues President Irfaan Ali of Guyana, President Jair Bolsonaro of Brazil and President Emanuel Macron of France:
Providing LNG for the power generation plants in Guyana, French Guiana and Brazil starting in 2025
SURINAME
- Construction of a LNG Floating Production Storage Offloading Platform close to the oilfields in block 58. The feasibility study should show which platform will be used namely, Small-Scale (200mmSCFD), Medium-Scale (300mmSCFD) or Large-Scale (600mmSCFD). Starting with a Small-Scale Platform, this can be extended as the demand increases by adding one or more units. One unit Small-Scale FLNG has been estimated by CHIYODA for USD 1.680 B.
- Converting of all the power generation engines with a total capacity of about 200 MW for using LNG. With this power generation capacity, which platform can be justified, a Small-Scale or a Medium-Scale one?
- Construction of LNG Receiving Terminal, a Regasification Unit and storage tanks onshore or alternatively a LNG Floating Storage Regasification Unit close to the power plant on the Suriname River.
GUYANA
According to the Oil & Gas Master Plan Update Final Report, February 2021 from Japan Cooperation Center Petroleum Chiyoda Corporation, the planning-of the oil- and gas developments is as follows:
- In 2024: starting natural gas delivery; total investments of the Gas-to-Shore Project for the sub-sea pipeline, onshore pipeline, equipment for separation of the natural gas liquids and a LPG plant is USD 900 million.
In 2024: starting 90 MW (5 x 18) natural gas-fired power plant # 1.
Stepwise development in case the demand increases.
In 2027: 90 MW power plant # 2;
In 2032: 90 MW power plant # 3;
Capex one unit power plant is USD ====
- In 2027: starting a Refinery plant with a capacity of 20,000 bpd for domestic use; Capex about USD 650 million.
- In 2030: starting a Small-Scale LNG Floating Production Storage Offloading Platform; 200 MM BPSD/1.2 M TPA. 1 unit Small-Scale FLNG estimation from CHIYODA USD 1.680 B USD.
Stepwise development in case the demand increases: In 2035: to be extended with a second Small-Scale Unit, In 2040: to be extended with a third Small-Scale Unit.
Based on the huge associated gas finds (to be confirmed end this year when the appraisal study of TE will be available) Suriname can make the following proposals to Guyana:
- Suriname can provide Guyana with LNG in 2025.
- There is no need for Guyana to carry out the Gas-to Shore Project; thus no investment of USD 900 million. Instead of the Gas-to-Shore Project, Guyana can participate in the FLNG Project of Suriname based on the Joint communique signed by both presidents on August 17-20, 2021.
- The associated gas of Liza 1 can be re-injected to the wells and can be used later when the gas resources of Suriname are depleted.
- Guyana has to make investments in a LNG receiving terminal, a Regasification Unit and storage tanks onshore or alternatively a LNG Floating Storage Regasification Unit on the river close to the power generation plant.
- The new power plant to be built onshore in Wales (as planned) can be replaced by a Floating Gas Power Plant Barge, if it is cost effective.
These proposals are based on the Joint communique signed by the two presidents referring to the need for a close cooperation by the two countries for the development of the gas resources. This approach will bring a lot of benefits for both countries.
FRENCH GUIANA
The electricity sector of FG has been confronted with old power generation engines with an age of about 30 years and have to be replaced by a new power plant to be built on shore in Larivot but the construction was stopped because of lot of environmental issues.
Suriname can provide French Guiana with LNG in 2025.
Electricite’ de France has to make the following investments: 1. Floating Gas Engine Power Plant on a Barge 90 MW (71 x 32 m). 2. LNG Floating Storage Regasification Unit close together on the Larivot River or where it is suited. “Lease and operation” can be applied to both projects with less annual investments.
With this proposal the main problems for the electricity sector will be solved.
BRAZIL
Suriname can provide Brazil with LNG in 2025.
About the logistics of transporting the LNG from the production offshore platform to the several destinations, there will be no problems. There are enough LNG carriers in the world.
There are also enough financial institutions worldwide which will have interest in investing in these projects.
Concluding remarks:
- Suriname will start with the takeoff in 2025 for the bright future (realizing the sustainable social and economic development goals) if the proposed projects can be carried out.
- A group of qualified persons with specific expertise has to be formed to advise the GoS for the strategic policy for the development of the gas resources and the monitoring of the decision process.
