Guyana currently uses Bunker C fuel to generate electricity nationwide. While this fuel has been primarily used for that purpose, the associated natural gas, which is intended for electricity generation, will reduce costs and enable the country to save millions of US dollars each year.
Approximately 300 megawatts (MW) of electricity needs to be generated daily, which amounts to a total cost of US$1M per day – US$365M per year.Â
Guyana’s Vice President Dr. Bharrat Jagdeo in his June 19 press conference said, “If you’re using Bunker C to generate 300 MW of power, it will be around a million US dollars per day. If you use your own gas and you don’t have to buy Bunker C, then you could save US$365M per year.”
The Gas-to-Energy (GtE) project, a collaboration between the government and ExxonMobil, aims to utilise natural gas from the offshore oil production for electricity generation and other industrial uses. The project involves transporting gas by pipeline to an onshore facility, where it will be processed into electricity and natural gas liquids (NGLs).
For this transition to take place, the two Karpowerships, presently supplying the country’s energy requirements will be put out of action and a new ship will come onstream.
Jagdeo said, “So this will be an entirely new ship that is dedicated to processing the gas to generate some liquids and to use the gas to generate about 300 MW of power. If you move to doing that, it will be located closer to the pipeline. Then you will decommission the two ships that we have, Berbice and Essequibo, should that come into being.”
Guyana signs US$422M transmission deal ahead of GtE project start-up
The GtE project, which will slash electricity costs by 50%, is expected to be completed in June 2026.
