Guyana on Monday received seven bids for the second phase of its landmark Gas-to-Energy project, which includes the design, construction, and operation of a 300-megawatt (MW) combined cycle power plant and a natural gas liquids (NGL) facility with a capacity to produce about 5,800 barrels per day (b/d).
The bids were submitted by the following companies/groups:
- Karpowership Global DMCC (United Arab Emirates)
- ENKA UK Construction Limited (United Kingdom), Onex Holdings SCS (Luxembourg)
- Andalusian Energy (United States)
- J&L Supplies Guyana Inc. (Guyana)
- CXL Solutions LLC, LSI Group Sociedad Anonima (Guatemala)
- CH4 Systems (Puerto Rico), Lindsayca (Texas)
- LS Energia Inc (consortium including Controlmatik, ESE Servicios Electromecanicos, Carlos Caballero) (Florida)
The tender, opened by the National Procurement and Tender Administration Board (NPTAB), sought private partners to develop the project under a 20-year power purchase agreement (PPA), allowing investors to recover their costs through the sale of electricity and monetization of NGLs. At the end of the PPA term, ownership of the facilities will be transferred to the government at no cost, the terms say.
The project will utilize about 70 million cubic feet per day (cf/d) of natural gas—the remaining capacity of a pipeline being constructed to transport about 120 million cf/d from ExxonMobil’s Liza field offshore Guyana to the Wales Development Zone on the western bank of the Demerara River.
Vice President Bharrat Jagdeo has said the second phase can be completed within two years. It will benefit from the same fiscal incentives granted to developers of the first phase—Lindsayca and CH4.
Together, the two phases are expected to deliver a total of 600 MW of power and roughly 9,800 b/d of NGLs, significantly reducing Guyana’s dependence on imported fuels and lowering electricity costs, which are among the highest in the region.
The first phase, currently under development, includes a 300 MW power plant and an NGL facility expected to produce around 4,000 barrels per day. It will use approximately 50 million cf/d of natural gas supplied by ExxonMobil, the operator of Guyana’s offshore Stabroek Block.
The Gas-to-Energy project is considered a transformational project for the South American nation, which became an oil producer in 2019.
