Two Karadeniz ships are in Guyana, delivered by UCC Holdings, to produce 96 megawatts (MW) of electrical power as Guyana awaits the completion of its Gas-to-Energy project.
The vessels are meant to critically meet growing demand as local heavy fuel oil (HFO) plants are insufficient to produce enough on their own.
The Karadeniz Baris Bey arrived in the Berbice River in the second quarter and is producing 36 MW for a contract period of two years. The second ship, the Karadeniz Ela Sultan, arrived in Guyanese waters and is headed for its docking place in the Demerara River, according to a December 10 Guyana Power & Light Inc (GPL) Facebook post. The arrival of the ship is on time to add 60 MW for the high-usage Christmas season. GPL anticipates power demand in 2024 could peak at 245.77 MW before ballooning to more than 300 MW in 2025. Demand is projected to grow nearly 10% annually in the period 2024-2033, driven by the housing, hospitality and commercial sectors.
Guyana is optimistic about transitioning to cleaner sources. Aside from small solar projects for individual towns and islands, the first substantial transition will happen when the Gas-to-Energy project becomes operational in 2025. It includes a 300 MW power plant that will use gas-fired power from the ExxonMobil-operated Liza field. The government says the project economics will allow it to slash costs associated with costly HFO imports and reduce consumer electricity rates by 50%. It also plans to place local HFO plants in reserve.
Further afield, the government expects proposals for a second phase of the Gas-to-Energy project in January. Expected to be completed in two years following a contract award, the project would include a 250 MW power plant.
The first major renewable project is the Amaila Falls Hydropower Project (AFHP). Talks broke down with a contractor because it could not see eye-to-eye with the government on a financial model. Tentatively, a start-up year of 2029 has been set by GPL for AFHP, delayed two years from the earlier estimate of 2027.
A second hydropower project is also being contemplated for the 2030s.
