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https://kiskadeewatch.com/opinion/letters/blow-dealt-to-lng-project-could-be-silver-lining/
Letters To The Editor

Blow dealt to LNG project could be silver lining

By

Dear Editor,

According to a recent Reuters exclusive released this week the amount of Natural Gas available for government projects has been reduced by Exxon due to its crude oil output target that has resulted in the need for more gas. The gas reinjection process used in crude oil production will impair the government’s ability to monetize gas resources and brings into question a number of planned government projects and the current gas utilization strategy. According to the report the most likely outcome will be the scaling back of the overall LNG project. 

Given the impact of the reduction in available gas and considering the recently reported dismal financial performance of GPL, we must look ahead and focus our efforts on sustainable power generation. The fiscal drain on the nation’s finances due to the Power Ships, the pending payment of the already failing gas pipeline and the evident gaps in the electricity grid’s infrastructure do paint a future picture that is expensive and filled with additional blackouts. Pivoting our energy generation and distribution strategy to align with reduced available gas resources must include an increase in the use of renewable sources of energy. The blow dealt to the LNG project reported in the Reuters exclusive this week can be viewed as a silver lining. It does create an opportunity to urgently mobilize resources set aside for the larger LNG project and refocus them on solar energy generation. Not only will this be cost competitive for both suppliers and consumers, it will also help reduce the electricity distribution costs needed for the planned expansion of the electricity grid. 

It is CRG’s hope that the government will quickly adjust its overall energy supply and distribution strategy to cater for the new global norm that we are seeing in renewable energy generation that is being bolstered by improved battery storage systems. Solar energy storage systems have seen significant gains in efficiency, safety, and grid intelligence. National grid solar systems have also proven very helpful in reducing peak load stress, an important issue currently faced by GPL that has resulted in numerous power outages and the use of a very expensive temporary power ship solution. 

Best regards,

Mr. Jamil Changlee

Chairman

The Cooperative Republicans of Guyana

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