Guyana gov’t asks House to approve GY$5 billion for Gas-to-Energy transmission, distribution work

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The Guyana government has submitted a supplementary provision to Parliament, proposing an additional GY$61 billion in funds for various government initiatives set for this year. Significantly, GY$5 billion (approximately US$24 million) of this has been earmarked for the Gas-to-Energy project.

Earlier in the year, a sum of GY$43.3 billion (approximately US$208 million) was approved by the House to buttress transmission and distribution work. It is noted in the House documents that this supplementary fund would be allocated towards that same purpose.

The move to request these additional funds appears to be directly associated with the recent contractual agreement with Kalpataru Projects International Limited (KPIL), an Indian company. In July, KPIL secured a US$159 million contract to develop transmission lines and substations, both of which will be pivotal in bolstering Guyana’s ambitious Gas-to-Energy project. The transmission infrastructure, scheduled for completion by 2024, plays a crucial role in supporting the new 300 MW Combined Cycle Gas Turbine (CCGT) Power Plant.

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The Gas-to-Energy initiative reflects Guyana’s broader strategy to enrich its energy spectrum. This strategy looks to tap into the benefits of natural gas, which stands as a cleaner and more efficient alternative to heavy fuel oil. Additionally, as Guyana progressively integrates renewable energy projects, natural gas is seen as a valuable transitional fuel. For a country that has grappled with the challenges of frequent blackouts, the installation of such state-of-the-art transmission infrastructure could mark a pivotal turn.

Central to the Gas-to-Energy project is the establishment of a pipeline, designed to transport natural gas from the Liza field operated by ExxonMobil. This pipeline will lead to an integrated gas processing facility located at Wales on the West Bank of Demerara. The major contracts pertaining to these integral components have been successfully awarded by both the Guyana government and ExxonMobil Guyana.


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