Guyana’s much awaited natural gas-to-energy project is on track to start up in 2024, the South American country’s government announced in its 2023 mid-year report.

Several major contracts related to the project were awarded in the first half of 2023, and “extensive engineering and construction development works [are] in motion,” the government said in the Aug. 28 report.

The project will use about 50 MMcf/d of gas sourced from Guyana’s offshore Stabroek Block to produce electricity and reduce the use of diesel to generate power.

Gas from Stabroek will be shipped to Guyana’s mainland via a 200-kilometer pipeline to feed a new power plant to be built in the Wales planning area, according to Hess Corp. Hess is a partner in Stabroek with operator Exxon Mobil Corp. and stakeholder CNOOC.

The gas-to-power project will reduce energy costs and carbon emissions, according to Hess.

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Stabroek’s estimated recoverable gas reserves are over 16 trillion standard cubic feet, Guyana’s government said in the report.

The government, in collaboration with Exxon, Hess and CNOOC, will continue to assess the gas potential of the block and continue testing the gas capacity over the next four years, the report said.