The Guyana government approached the Parliament on November 25 for more money to continue the development of the Gas-to-Energy project, a landmark energy expansion endeavor.
Senior Minister in the Office of the President with responsibility for Finance and the Public Service, Dr. Ashni Singh, filed papers with the House, including a request for GY$25.3 billion (approximately US$121 million).
“Once this comes on stream, it is expected that electricity costs will be reduced by 50 percent countrywide, increase the competitiveness of other industries, and reduce Guyana’s reliance on heavy fossil fuels,” the Ministry of Finance said in a November 25 release.
Documents filed with Parliament indicate the government spent approximately US$350 million in 2022-2023 funding the Gas-to-Energy project’s development. The Parliament also approved approximately US$384 billion earlier this year.
The most recent request of US$121 billion will take parliamentary appropriations to US$855 million to support the Gas-to-Energy project.
The project is purposed to establish infrastructure so natural gas can be transported from the offshore Stabroek Block’s Liza oilfield to an integrated gas processing facility at Wales, on the West Bank of Demerara. The project is expected to see 50 million cubic feet of gas per day transported onshore, principally for power generation.
Exxon hired contractors to lay a pipeline estimated to have cost about US$1 billion, while the government hired CH4-Lindsayca to construct the integrated facility for US$759 million. The pipeline has been laid, but construction on the power plant is not expected to be completed until 2025. Government is awaiting approval of a loan of more than US$600 million from the United States Export-Import Bank in support of the project. Meanwhile, it has been funding the project from its treasury.
Government plans to pursue a second phase of the Gas-to-Energy project. It expects proposals from interested companies in January.
