At last year’s Energy Conference, Winston Brassington, Head of Guyana’s Gas-to-Energy Taskforce, announced that the project would be ready by mid-2025. This year, he returned with an update—its completion has been delayed.
This relates to the facilities being constructed by the government at the project’s Wales, West Bank Demerara location.
“On the integrated facility, contractually, this is scheduled to be delivered in the second half of this year but we have seen a schedule that suggests it will take longer. Contractually, this year, realistically, we are looking at some delays,” Brassington reported.
Guyana gov’t allocates US$245 million to complete Gas-to-Energy project | OilNOW
He did not go into specifics but noted however, that disputes are causing the hold up.
The Guyana government had moved to adjudication after Lindsayca/CH4 sought US$50 million due to a delay that saw the project starting late. The company is responsible for constructing a natural gas-fired power plant and natural gas liquids (NGL) plant to the value of US$759 million. A ruling was recently issued by the Dispute Avoidance and Adjudication Board (DAAB). The parties are now mulling whether to refer the decision to arbitration. This would be the next stage in the dispute resolution process.
The pipeline for the project has already been built by ExxonMobil Guyana.
When completed, the project’s benefits will include a doubling of the country’s electricity generating capacity to meet growing demand and a reduction in the cost of generation, thereby enabling electricity prices paid by consumers to be cut by 50 per cent.
A guide to Guyana’s Gas-to-Energy project
This is expected to facilitate rapid expansion in industrial activity and immediately improve the competitiveness of the manufacturing sector and all other productive sectors that are energy intensive. Guyana authorities say this will deliver vast employment and entrepreneurial opportunities to the South American nation.
The total cost of the Gas-to-Energy project is US$1.1 billion (GY$229 billion).
