Months before the country’s Gas-to-Energy (GtE) project is set to deliver first power, Guyana has signed US$422 million in contracts. The firms awarded are Power China and Kalpataru Projects International Limited (KPIL). They are expected to complete the work within 12 months.
At the contract signing on April 4, it was disclosed that the investment includes 322 kilometers of new high-voltage lines, five new substations and the upgrade of the Kingston substation.
“This will allow GPL to transmit power in a reliable way towards the eastern corridor of Guyana, which is intended to accommodate future growth,” Kesh Nandlall, CEO of Guyana Power and Light Inc. (GPL), said.
The upgrades are critical as Guyana prepares to commission the first phase of its 300-megawatt gas-fired power plant by November 2025. The sweeping infrastructure upgrade will enable GPL to deliver power generated from natural gas, rather than imported heavy fuel oil, across the Demerara-Berbice Interconnected System (DBIS), the country’s largest grid.
The plant, located at Wales on the West Bank of Demerara, will be fueled by natural gas from the offshore Stabroek Block – operated by ExxonMobil – and is expected to generate about 4,000 barrels of oil equivalent per day.
A major piece of this effort – the Goedverwagting substation – is nearing completion ahead of schedule.
Minister within the Ministry of Public Works, Deodat Indar, who inspected the facility, confirmed it is on track for commissioning by June 30. He said the upgraded infrastructure will support large-scale residential, commercial and industrial development in regions 5 and 6.
However, for a fast-growing oil economy that’s grappling with electricity reliability and cost, the stakes are high. “Right now, we do not have the transmission lines to accommodate the bulk power movement. These contracts… are to accommodate the movement of that power from the central location towards the East Coast, towards region 5 and region 6,” Indar said.
He warned that these projects must be completed on time and within budget.
The first 300 megawatts (MW) of gas-generated power are expected to come online soon. The second phase of the GtE initiative is expected to include another 300 MW combined-cycle plant and a natural gas liquids (NGL) facility that will produce 5,800 barrels per day of propane, butane, and pentane. Seven bids for this phase were received in March, with a developer expected to be selected later this year. When completed, the full GtE project will provide 600 MW of generating capacity and 9,800 b/d of NGLs.
GPL will purchase the electricity under a long-term Power Purchase Agreement. This output is expected to meet Guyana’s rising energy demand, driven by rapid population and industrial growth—over 13,900 new GPL customers requested service in 2024 alone.
