Guyana moves forward with second power plant, RFP now open for submissions

The Government of Guyana (GoG) has invited qualified firms to submit proposals for the design, financing, and operation of Phase II of the Gas-to-Energy (GTE) project. The project will be governed by a 20-to-25-year Power Purchase Agreement (PPA), according to a notice from the Office of the Prime Minister. 

Phase II aims to utilize an additional 75 million cubic feet per day (MMCFD) of rich gas to fill the 250 km pipeline from the offshore fields to Wales. This follows Phase I, which supplies 50 MMCFD, accounting for 40% of the pipeline capacity. Phase II will complete the remaining 60%.

Key components of Phase II include the construction and operation of a 250 MW combined-cycle power plant. This facility is expected to deliver 2,100 GWH of electricity annually, which will be sold to the Guyana Power and Light (GPL) under the PPA. Additionally, the project will feature a Natural Gas Liquids (NGL) facility producing approximately 6,000 barrels per day of propane, butane, and gasoline. Excess lean gas, estimated at 30 MMCFD, will be provided to the GoG for use in downstream industries, such as fertilizer production.

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The project, to be developed on 100 acres adjacent to the existing 300 MW integrated facility, will be 100% privately owned and financed. Only firms experienced in Engineering Procurement and Construction (EPC) and financing of similar projects will be considered. The GoG will have the authority to approve the EPC contract and appoint an independent firm to ensure compliance with project standards.

Investors will recoup their investments through electricity sales via the PPA and revenue from NGL production. At the end of the PPA term, the facility will revert to the GoG at no cost. The GoG also reserves the right to buy out the project or take over NGL marketing under agreed terms.

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Proposals must include detailed financial projections, expected revenues, and operational costs. The RFP document, available for a fee of G$25,000, contains additional requirements, including information on CAPEX, local content, and project timelines.

Interested parties must register and submit their proposals by November 14, 2024, to the National Procurement and Tender Administration Board.