Guyana’s oil and gas sector gets another boost

-as new Air Separation Unit commissioned

Another tangible investment has been made in meeting the demands of Guyana’s oil and gas sector, with the commissioning of Massy Gas Products Guyana Ltd (MGPGL)’s Air Separation Unit (ASU) on Thursday.

Minister of Natural Resources, Vickram Bharrat, commended the significant investment against the backdrop of Guyana’s rapidly expanding economy.

The facility was commissioned at a simple ceremony at Old Road, Eccles, East Bank Demerara.

An air separation unit (ASU) is a large-scale industrial facility that separates atmospheric air into its primary components: nitrogen, oxygen, and in some cases, argon.

The plant eliminates the need for imports, producing high-purity gases that surpass industry standards in Guyana while also achieving significant energy efficiency, resulting in cost savings amidst rising global energy prices.

It produces roughly 13 tonnes of product per day of liquid oxygen and nitrogen, allowing for more economical transportation and storage.

Minister Bharrat explained that it aligns with the government’s vision to position Guyana as a manufacturing commercial hub.

“Today in 2024, we are boasting of producing over 650,000 barrels per day. And we are well poised on our way that in another four years from now, we will be close to 1.4 million barrels per day. That is unprecedented,” the natural resources minister highlighted.

He pointed to the highly anticipated gas to energy project, which will slash electricity costs by 50 per cent, empowering Guyanese with access to clean, reliable energy, and addressing a longstanding issue of power generation.

The minister said the project forms part of a wider initiative to establish a manufacturing industrial park on the West Bank of Demerara.

“That is why we are commissioning this plant today, because their products will be essential when we move towards that industrial manufacturing park on the West Side. And think of the benefits when we start to manufacture our own products. You have cheaper products. You save on foreign currency that you would have spent on importing goods. It creates a number of opportunities,” he underscored.

Construction of the plant began in July 2021, with the first productive operation being completed in May 2023. Since then, it has exceeded its rated capacity.

Chief Executive Officer of Massy Gas Products Guyana, Augustine Harris, expressed confidence that based on this trajectory, the plant will be able to satisfy the country’s demand for nitrogen and oxygen.

“It is important to note that we have the capacity to satisfy the demand of nitrogen associated with turnarounds, start-ups, and shutdowns in the oil and gas sector, inclusive of the commissioning of the gas-to-shore pipeline,” Harris added.

The ASU produces oxygen at a purity of 99.99 per cent, and nitrogen at a purity of 0.155 per million of oxygen.  This level of purity exceeds the requirements for oxygen gas in all medical and industrial applications, while the nitrogen gas purity satisfies requirements for our local beverage companies and other users in the industry.

The ASU was manufactured in India by Cosmodyne, a subsidiary of Nikkiso, a Japanese company.

The CEO further explained that while the oil and gas sector is poised to be the plant’s biggest market, it will also service other sectors, such as manufacturing, construction, and health.

Massy Gas Products, formerly known as Demerara Oxygen Company Ltd (DOCOL), was established in 1948, and was originally focused on producing and supplying oxygen and acetylene gases for industrial and medical use in Guyana.

Over time, the company expanded its product portfolio to include nitrogen, nitrous oxide, and other gases. In the 1970s, DOCOL ventured into the liquefied petroleum gas (LPG) market under the name Tex Gas.

The company plans to invest in a three-tonne per day CO2 filling plant by year-end, and later on a CO2 production plant, as part of its bid to contribute to Guyana’s growing economy.

United States Ambassador to Guyana, Nicole Theriot; Chief Fire Officer, Gregory Wickham; members of the diplomatic corps; private sector representatives, senior management and staff of the Massy Group of Companies were also in attendance.