Guyana has allocated GY$10.7 billion in its 2026 budget to advance its flagship Gas-to-Energy project. This, along with efforts to further the country’s gas-based power development and to resuscitate the Amaila Falls Hydropower Project, is part of the country’s clean energy push for 2026.
The allocation was outlined by Minister of Finance, Dr. Ashni Singh, during the presentation of Budget 2026 this week.
Dr. Singh said the funding will support the completion of Phase I of the Gas-to-Energy project at Wales on the West Bank of Demerara. This includes the completion of the power plant, control center, natural gas liquids (NGL) plant and transmission lines “before the end of 2026”.
The development of Phase II of the Gas-to-Energy project, the examination of a second Gas-to-Energy project in Berbice, and efforts to get the Amaila Falls Hydropower Project back on track remain on the government’s radar.
Phase I of the Gas-to-Energy project is intended to generate electricity using natural gas produced offshore. The government projects the project will be able to deliver power by the last quarter of 2026, once the transmission and distribution upgrades are completed.
The project has faced delays. It was first expected to be completed in the final quarter of 2024. In December, the government said the project would be completed by mid-2026. Dr. Singh revealed this week that the timeline has shifted to the end of 2026.
Offshore works were completed in keeping with the original schedule by ExxonMobil, the operator of Guyana’s offshore Stabroek Block. These works included the pipeline to transport natural gas from offshore developments to onshore facilities. Construction of the onshore infrastructure has taken longer.
Government projects the Gas-to-Energy project to cut electricity costs by about 50% and reduce emissions from power generation by shifting supply away from heavy fuel oil. Lower power costs are also viewed as important for improving Guyana’s investment climate and competitiveness for local businesses.
Phase II of the Gas-to-Energy project is expected to utilize about 70 million cubic feet per day of natural gas. This represents the remaining capacity of a pipeline being constructed to transport about 120 million cubic feet per day of natural gas from ExxonMobil’s Liza field offshore Guyana to the Wales Development Zone on the western bank of the Demerara River.
Vice President Bharrat Jagdeo has said the second phase can be completed within two years. He has also said it will benefit from the same fiscal incentives granted to developers of the first phase, Lindsayca and CH4. Together, the two phases are expected to deliver a total of 600 megawatts of power and roughly 9,800 barrels per day of natural gas liquids.
Meanwhile, the Amaila Falls Hydropower Project, which will see an injection of cash this fiscal year, is expected to have a capacity of at least 165 megawatts. The project was initially planned by the administration for start-up in 2027. Talks with its last contractor fell apart in 2022.
The government has set February 15, 2026, as the deadline for the submission of detailed proposals for Amaila, including financing plans, as it moves to revive the hydropower project.
