Guyana is planning to construct a US$300 million ammonia and urea plant at Wales on the West Bank of Demerara. Plans are also underway to establish a gas bottling and logistics company, as the country seeks value-added production from its natural gas resources.
Ammonia and urea plant
The Government, through the Office of the Prime Minister (OPM), said it is accepting Engineering, Procurement and Construction (EPC) proposals for the establishment of the Guyana Ammonia and Urea Plant (GAUP). The facility will use up to 20 million cubic feet of gas per day from phase 2 of the Wales Gas-to-Energy project.
The plant is expected to produce about 300,000 tons of fertilizer annually and become operational by 2028. This is in line with the completion of phase 2 of the Gas-to-Energy project, the government said.
The GAUP will be developed as a public-private partnership, with the government seeking an EPC contractor to design, build and operate the plant while partnering with a world-class technology licensor. The output will target both domestic and regional markets, including Northern Brazil and the Caribbean. This is with the aim of lowering fertilizer prices and boosting agricultural productivity, the government said.
The proposed site lies east of the combined-cycle power plant and NGL facility under construction at Wales for the first phase of Gas-to-Energy. The plant will receive lean gas from Guyana Power and Gas Inc. (GPGI), a government-owned company.
The government has set a deadline of January 22, 2026, for proposals to be submitted.
Gas bottling and logistics company
Additionally, the government, through OPM, is seeking proposals to design, engineer, construct, and then operate, all required assets for a company under a public-private-partnership model. This is for the purpose of bottling, transporting and distributing cooking gas domestically, a notice published in the state newspaper said.
The plan is to facilitate a reduction in domestic cooking gas prices. Annual domestic demand for cooking gas is equivalent to three million 20-pound cylinders with a retail value of GY$14 billion per annum.
The project is planned for a location in Wales, east of the site of the combined-cycle power plant and NGL facility being constructed for the first phase of Gas-to-Energy. The plant will receive lean gas from Guyana Power and Gas Inc. (GPGI), a fully government-owned company, at wholesale prices.
The Gas-to-Energy task force has set a deadline for proposal submissions as January 15, 2026.
Related infrastructure
The GAUP and the gas bottling and logistics company are related to the Gas-to-Energy project and, therefore, the Gas-to-Energy task force is a key point of contact for interested companies.
So far, the infrastructure includes a completed pipeline transporting gas from ExxonMobil’s offshore fields to Wales, a 300 MW power plant and a 5,800-barrels-per-day natural gas liquids (NGL) facility currently under construction. Plans also call for a second phase with similar plants, as well as a proposed marine storage and offloading facility for the NGLs. Now, the proposed GAUP and the planned gas bottling and logistics company form part of this broader vision.
Though no construction has started on phase 2 of the Gas-to-Energy project, Vice President Bharrat Jagdeo has said the government estimates that the infrastructure would take two years to build. The National Procurement and Tender Administration Board (NPTAB) opened seven bids in April from groups interested in developing phase 2 but has not announced a decision.
Gas supply for phase 2 will come from the Hammerhead project, for which Exxon secured government approvals in September. The project is expected to start producing gas for transport to shore in 2029, in addition to oil, which will flow at a rate of 150,000 barrels per day.
Construction on the first phase of plants is expected to be concluded by mid-2026.
