Guyana’s Gas-to-Energy project, one of the country’s largest infrastructure undertakings, is being financed through a mix of private investment, government spending, and external borrowing, with costs spread across offshore and onshore components.
The project, estimated at about US$2 billion, is designed to bring natural gas from the ExxonMobil-operated Stabroek Block to shore for power generation and industrial use.
Pipeline and associated infrastructure
ExxonMobil Guyana and its Stabroek Block co-venturers financed the pipeline segment of the project, which includes the subsea and onshore pipeline and related infrastructure. Exxon has put the cost of this component at about US$1 billion.
The company contracted a joint venture of Van Oord and Subsea 7 to install the offshore pipeline, while a separate joint venture between Guyana-based GAICO Construction and General Services and Italy’s SICIM handled onshore pipeline works.
These investments were not funded by the Guyana government. Instead, Exxon and its partners will recover their costs through a gas sales agreement once the project comes online.
Onshore gas processing and power plant
The Guyana government is responsible for financing the integrated facility at Wales, which includes a natural gas liquids (NGL) processing plant and a 300-megawatt power plant.
In 2022, the government awarded a US$759 million contract to a U.S.-based group comprising CH4 and Lindsayca to build the facility. After CH4 exited the partnership in 2025, Lindsayca committed to completing the project.
To support this component, Guyana secured a US$526 million loan from the United States Export-Import Bank. The financing is tied to the procurement of U.S.-exported materials for the project.
The remainder of the funding for the facility is being funded with government resources.
Transmission infrastructure
Additional public spending is directed toward power distribution. The government awarded a US$159 million contract to India’s Kalpataru Projects International Limited to build transmission lines and substations needed to deliver electricity from the Wales plant to consumers.
How repayment works
While ExxonMobil and its co-venturers financed the pipeline, the government is expected, through a gas sales agreement, to pay about US$55 million annually for 20 years as a repayment mechanism.
Guyana plans to commercialize natural gas liquids extracted at the Wales facility. The Guyana government estimates this could generate about US$100 million per year, allowing the country to meet its repayment obligations while retaining surplus revenue.
Debt and overall structure
The project introduces external debt primarily through the US$526 million Ex-Im Bank loan, but officials have said the financing is manageable given expected economic growth.
In structure, the project splits financial responsibility: private capital covers upstream and transport infrastructure, while the state finances downstream processing and power generation, supported in part by external borrowing and future revenue streams.
The core onshore infrastructure is expected to be completed by the end of 2026.
The government says the Gas-to-Energy project could cut power bills by 50% and reduce emissions by replacing imported heavy fuel oil with natural gas. It is also expected to more than double generating capacity and help ease power instability caused by rising demand.
Additional aspects of the Gas-to-Energy project are expected in the future, such as a marine offloading facility for natural gas liquids and a gas bottling company. These are expected to be government-led but financing mechanisms are not yet set in stone.
Read a complete project explainer below: UPDATED: A guide to Guyana’s Gas-to-Energy project︱OilNOW
