Thursday, September 28, 2023

US companies dominate RFPs for Guyana’s landmark refinery

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CH4 Guyana Inc & Lindsayca Inc, the US-based partnership that will construct the onshore facilities for Guyana’s Gas-to-Energy project, has signalled its interest in building the nation’s first refinery.

The US group in collaboration with Sol Guyana Inc. recently submitted its proposal to the National Procurement and Tender Administration Board (NPTAB).

Also signalling its interest in constructing the 30,000 barrels per day (bpd) facility was Freight N Cargo Logistics Inc. headquartered in the USA.

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DRL Engineering from the USA in a joint venture with the UAE’s Globe Engineering Supplies & Services FZC (GESS) has also submitted a proposal.

Finally, Berbice Green Refining Inc. in a joint venture with ARC Energy, Polaris EPC, and Barson SG. have also lodged their proposal with NPTAB.

In October the government issued a Request for Proposals (RFP) for the design, financing, and construction of a modular refinery, which is to be located at the mouth of the Berbice River in the vicinity of ‘Crab Island’.

The government said it expects construction to start by the first quarter of 2023 with project completion two years later.

In addition to providing an estimated 30 acres of land, the government said it will also offer generous fiscal incentives for the project including a 10-year tax holiday, supply of feedstock (oil) from the Guyana government’s share of profit oil at market prices; and access to the domestic market for the sale of refined products (if desired).

The RFP also explicitly stated that the government will not have any ownership or investment interest in the project. The government had also said the refinery is purely for national security reasons.

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