President of Guyana, Dr. Mohamed Irfaan Ali said the government and households will see direct savings once the first phase of the landmark Gas-to-Energy project is delivered.
He provided estimates during a recent State House event, outlining the project details.
“We have just over 220,000 households connected to the grid now. The current revenue is about GY$40 billion. Cut that in half… that is $20 billion of savings for the households of Guyana,” the President said.
This 50% reduction was one of the principal promises made by the Ali administration in its 2020 election campaign. He said those savings would then be freed up to be spent in the economy to expand the acquisition of goods and services.
Added to that, Dr. Ali said savings will come from the utilisation of liquefied petroleum gas to the tune of GY$7 billion.
“The current retail price for cooking gas is $4500 for a 20 lb. cylinder,” he said. “The value of the market as I speak to you now is GY$10.1 billion… What we are projecting to do, all things being equal, is to have cooking gas available substantially less.”
“Initially the pipeline will transport fifty million standard cubic feet of gas per day; this has the ability to power a 300 mega-watt powerplant, supply an NGL facility to deliver at least 3,500 barrels of liquid, that is cooking gas, plain man language,” Dr. Ali said.
He pointed out that cooking gas will not be free, but that it would be delivered at a cost that saves the country GY$7 billion.
“So, with cooking gas and electricity, we are talking about GY$27 billion that goes back in the pockets of people, goes back in the household,” Ali said. “When you want to know how this project brings benefits directly to the household and to the wider economy, these are just 2 examples I’m giving…”
As for fuel imports, Dr. Ali said that the state electricity provider, Guyana Power and Light (GPL) will be saving US$11 million in foreign currency.
The President explained that the Gas-to-Energy project brings tremendous opportunity for Guyana to become a player in the regional energy mix, in addition to meeting domestic needs.
The Gas-to-Energy project is one of the pillars of the government’s Low Carbon Development Strategy (LCDS) 2030. The procurement process for the project, supported by ExxonMobil and the Stabroek Block co-venturers, has already begun.