The Guyana government said on Thursday it had settled contractual disputes tied to the country’s flagship Gas-to-Energy project, while reaffirming that first power from the development remains targeted for the end of 2026.
The disputes involved work being carried out by contractor Lindsayca Guyana Inc. on the 300-megawatt power plant and natural gas liquids facility at Wales on the West Bank of Demerara, part of a broader project aimed at reducing electricity costs and expanding power generation capacity.
In a statement, the Office of the Prime Minister said the government and Lindsayca had resolved two matters that were decided by a Dispute Avoidance/Adjudication Board in January 2025 relating to soil stabilization works and delay-related provisions.
The settlement removes the need for further proceedings such as arbitration and allows construction to continue “under a fully aligned, forward-looking framework,” the statement said.
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Guyana said the settlement represents a 12.8% increase over the original US$759 million contract sum for the power plant and natural gas liquids facility. However, it maintained that the overall government-funded Gas-to-Energy project is still expected to remain within a 10% contingency on its original US$1 billion budget.
The broader project includes the power plant, transmission works, substations, 230 kV and 69 kV transmission lines and a new national control center.
“The overall cost of the [project] is not expected to exceed US$1.1 billion, including the 10% contingency,” the statement said.
Prime Minister Mark Phillips said the government remained committed to delivering first power to the national grid by the end of 2026.
“The Wales Gas to Energy project represents a defining moment for Guyana and for the energy future of every citizen of this nation,” Phillips said.
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The government said the first gas turbine is expected to come online by the end of 2026, with all gas turbines fully commissioned by the first quarter of 2027 and combined-cycle operations targeted for completion by June 2027.
The Gas-to-Energy project is designed to use natural gas from ExxonMobil’s offshore Stabroek Block operations to generate lower-cost electricity and produce liquefied petroleum gas for domestic use.
The government has said the project is expected to halve electricity costs, reduce fuel imports and support industrial development in Guyana.
