With every question answered, Gas-to-Energy must now move forward – President Ali

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Promoting the upcoming Gas-to-Energy project, Guyana President Dr. Mohamed Irfaan Ali said the landmark energy initiative has undergone every single test of public scrutiny and passed.

“As far as I’m aware, every single question has been provided with an answer because there is absolutely nothing to hide in this process or project,” Dr. Ali said at State House on Thursday. “It is above board. It is transparent. It is open. It has undergone every single test of scrutiny…”

This project, heralded as the single most transformational project in Guyana’s history, has been heavily scrutinised in Guyanese media over the last two years. Questions tended to focus on its financial and environmental feasibility.

Now, Dr. Ali said, it is time for Gas to Energy to advance the prosperity of Guyana.

Ali told a diverse gathering that a list of nine prequalified firms have until September to submit their proposals under an engineering, procurement and construction (EPC) contract for the project. He said government and ExxonMobil expect procurement for the project to be concluded by the fourth quarter.

And to make sure that the project is completed efficiently, government will hire a world class project management firm to supervise.

Government is handling the onshore natural gas liquids (NGL) facility and the power plant. The onshore facilities will be situated at Wales on the West Bank of Demerara in a special industrial zone. These facilities will collect and process natural gas transported via a 225 kilometer (km) pipeline – ExxonMobil’s responsibility – from the Liza Phases One and Two projects.

The project is expected to transport 50 million cubic feet per day in its first phase. This will provide enough electricity to stimulate Guyana’s energy expansion agenda, adding 250 megawatts (MW) to the grid and providing cheaper power to catalyse the shift to renewables.

“At the end of this, the electricity generation cost is projected to be US$0.04-US$0.05 per kilo Watt hour (kWh)… [that] includes paying back for the pipeline, the NGL facility, the power plant, and also the operating cost. That is quarter what we’re paying now,” Dr. Ali said.

On the NGL facility side, it is expected to produce nearly five times Guyana’s domestic demand for cooking gas (liquefied petroleum gas). This will create a significant business opportunity.

It is expected that this project, one of the major pillars of government’s Low Carbon Development Strategy (LCDS) 2030, will be operational by 2025.


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