Gas-to-energy investors must show local content plans, track record and capabilities

The Ministry of Natural Resources has laid out stringent requirements for persons interested in investing in the upcoming US$900 million gas-to-energy project, including demonstration of local content details, technical and financial capabilities, and track record.

These requirements are outlined in a public notice from the Ministry, which calls on interested persons to apply to partner with the Government on any of the three components of the project.

Minister of Natural Resources, Hon. Vickram Bharrat

It said the information provided must show local content details for the parties’ capital and operating expenditures, ownership, employment, materials and supplies.

This is part of the Government’s commitment to carve out sectors for locals in the petroleum industry, and quotas in cases where locals cannot meet all the demand.

Interested investors will have to include local content details in a solid business plan.

Preliminary Artist’s Impression of Natural Gas Plant (Source: EEPGL)

Additionally, interested parties are required to show technical and financial capabilities, track record, profile and relevant information on the applicant or consortium.

Minister of Natural Resources, Vickram Bharrat MP has urged locals to come together and form consortia to meet rising demands in multiple sectors, lest they be outpaced by foreign investors.

The first component of the gas-to-energy project offers partnership with Government and ExxonMobil to design and utilise the outputs from the Natural Gas Liquids/Liquefied Petroleum Gas (NGL/LPG) facility and related facilities.

Another component seeks partners for the design, construction and financing of the natural gas power plant.

The third deals with value-added industries developed from the processing of natural gas.

For each, the Government has left no stone unturned in demanding specific details which demonstrate that the applicant/consortium is sufficiently prepared to undertake projects of such magnitude.

All of these developments are intended for the Wales Development Zone (WDZ), an area designated by Government for the landing of the pipeline from the Liza project, and the establishment of heavy industries.

Government’s plan for this zone is to strengthen the economy, putting more money into families’ pockets through power cutting costs.

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