The Government of Guyana has issued a Request for Proposals (RFP) seeking qualified firms to manage the operations and maintenance (O&M) of a 300-megawatt (MW) power plant and related auxiliary facilities as part of the Gas-to-Energy Project. This power plant, set for commissioning in the latter half of 2025, will sell its generated electricity to Guyana Power and Light, Inc. (GPL) via a Power Purchase Agreement.
The O&M contract covers critical infrastructure, including the balance of plant (BOP) such as deaerators, cooling water systems, and boiler feed water pumps, all integral to the power and natural gas liquids plants. However, the contract notably excludes the natural gas liquids fractionation plant, which will be addressed separately. The power plant and auxiliary facilities are situated on a 100-acre site in the Wales Industrial Zone, located approximately 25 kilometers (km) inland on the west bank of the Demerara River.
The gas needed for the plant’s operation will be delivered through a 12-inch, high-pressure pipeline running from the offshore Stabroek Block to the onshore facility. Pipeline installation was completed this year, Subsea7 said in its Q2 earnings report.
The RFP emphasizes the necessity for firms with experience operating at least five comparable combined-cycle power plants, as well as the financial and technical capacity to handle large-scale, advanced technology operations. The highest-ranked technical proposal will undergo negotiations with the aim of finalizing an O&M contract. Interested firms must submit their proposals by 2 p.m. on October 15, 2024, to the National Procurement and Tender Administration Board (NPTAB).
Vice President Bharrat Jagdeo has said that once gas-fired power is integrated into Guyana’s electricity grid, the country will see a 35% reduction in emissions associated with electricity generation. According to GPL’s Development and Expansion Program (2024-2028), the Gas-to-Energy Project will contribute 295 MW of installed capacity, supplemented by a 30 MW battery energy storage system. This brings the firm capacity to 325 MW. Additionally, a solar project in Berbice, slated for completion in 2025, is expected to contribute 10 MW of non-firm capacity. Altogether, the committed capacity to be added in 2025 stands at approximately 335 MW.
This increase in power generation is a crucial development, as GPL has been struggling with supply shortages, leading to power outages in 2024. With the new projects coming online, Guyana’s power supply is projected to more than double by 2025, significantly improving reliability.
The government has also invited proposals for phase 2 of the Gas-to-Energy project, which would boost generation by an additional 250 MW.
