Saturday, May 21, 2022

Guyana government to pump GY$20.8 billion into landmark gas-to-energy project

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The Guyana government presented its 2022 National Budget on Wednesday in the National Assembly where it was disclosed that GY$20.8 billion dollars is being earmarked for the landmark gas-to-energy project.

With the country’s energy demand expected to grow within the next five years, the government has eyed the reduction of electricity costs by 50 percent through the use of natural gas. And it will also help to phase out the use of expensive and carbon-intensive heavy fuel oil.

The gas-to-energy project will see a power plant being constructed to generate 300 megawatts (MW) of power and a Natural Gas Liquids (NGL) plant to cover Guyana’s domestic demand.

A 225 km 12” pipeline will also be constructed to transport the “guaranteed minimum” of 50 million standard cubic feet per day (mmcfd) of natural gas from offshore Guyana to the Wales Development Authority.

Senior Minister with responsibility for Finance, Dr. Ashni Singh detailed that thus far, ongoing geotechnical and geophysical works for both offshore and onshore operations are advancing with portions already completed.

And further, an Environmental and Social Impact Assessment is expected to be completed early in the second quarter of 2022.

It was only in September last year that the government issued an advert for the prequalification of firms interested in the project.

Dr. Singh highlighted that using a transparent procurement process, it is expected that the firm selected would be able to engineer, procure and construct the Power Plant and NGL Plant along with related facilities.

Construction is expected to start in the third quarter of 2022 and will be completed by the fourth quarter of 2024.

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