Guyana’s Finance Minister, Dr. Ashni Singh, announced the anticipated commencement of the construction of the Gas-to-Energy (GtE) integrated facility, which includes a 300-megawatt (MW) power plant, in the second quarter of 2024. The government contracted a US-based group (CH4-Lindsayca) to build out the facility at Wales for US$759 million.
During a Jan. 15 reading of the government’s 2024 budget proposal, Dr. Singh said GY$80 billion (approximately US$384 million) is budgeted to advance the project in 2024, with some of the funds going to upgrades to transmission and distribution systems. Indian company, Kalpataru Projects International Limited (KPIL), was awarded a contract of approximately US$159 million to establish transmission lines and substations.
Singh highlighted advancements in civil works required for the project’s development including the completion of a material offloading facility and a heavy-haul road, now operational, on the West Bank of the Demerara River. He further noted that the onshore pipeline installation and the initial offshore pipeline activities, initiated in 2023, will continue this year.
He said the start-up period being aimed for the integrated facility is December 2024.
The Gas-to-Energy project aims to establish infrastructure for transporting natural gas from the offshore Stabroek block’s Liza oilfield to the Wales facility. This project is expected to deliver gas to the government for power generation and other forms of commercialization. Government plans to cut the cost of electricity to consumers by 50%, once the plant starts running, switching out heavy fuel oil (HFO) for the less-polluting natural gas.
