Gas-to-Energy power plant must be done by 2024; NGL facility may come later – Jagdeo

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Guyana’s Vice President Dr. Bharrat Jagdeo says the Gas-to-Energy power plant has to be in place by 2024, but that the Natural Gas Liquids (NGL) facility may not be completed by then. He said it could come until 2025 because it is “a bit more complex”.

“So, what happens is that they will feed the raw gas to the power plant in the first year and then when the NGL facility is completed, then the gas would be dried and then the lean gas would be fed to the power plant and you get the liquids,” Dr. Jagdeo told reporters during a recent media conference in Georgetown.

The government has already gone out to tender for the facilities, Dr. Jagdeo indicated, with bids expected to be received up to the first week of September.

He said the government has indicated that it wants western technology to be used. Bids will have to conform to this requirement. When proposals were being submitted for pre-qualification, the estimates were ranged between US$550 million and US$700 million, Dr. Jagdeo indicated. He is hopeful that the bids come within this range.

While government is responsible for the construction of the onshore plants, Exxon is responsible for building the pipeline and associated facilities to support the transportation of gas from the Liza field to the Wales Development Authority, where the facilities will be built.

Exxon had indicated in project documents with the Environmental Protection Agency (EPA) that the pipeline segment, to be in place by 2024 as well, will carry a preliminarily estimated cost of US$1.3 billion.

This means the whole project could cost up to US$2 billion.

The government intends for the gas to be a major contributor to Guyana’s power supply, with consumers billed at half the rates they pay today. The NGL facility will be able to process natural gas liquids with major commercialisation potential for Guyana. Government has invited proposals for facilities at the Wales Development Zone, an upcoming special industrial site, to utilise the natural gas by-products.

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