A ruling has been issued in the dispute between the Government of Guyana and Gas-to-Energy contractor, Lindsayca/CH4. The matter was referred to the Dispute Avoidance and Adjudication Board (DAAB) on September 19, 2024.
In a statement on Monday, the Office of the President said the parties to the dispute resolution process are bound by certain rules of confidentiality and now have 28 days to determine if they wish to refer the decisions to arbitration. This would be the next stage in the dispute resolution process.
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.
The Office of the President reminded in its statement that certain aspects of the project were executed on the government’s behalf by ExxonMobil. Exxon is the operator of the Stabroek Block from where the gas is being piped to shore for the project. The company finished installing a pipeline in 2024, connecting the offshore Liza field to the site of the facility that will host the plants at Wales.
According to the statement, the government will determine the best course forward in the next few weeks after consulting with Exxon and other partners, as well as relevant legal and technical advisors.
The Office of the President said the government’s priority is to ensure that the project is completed in the shortest possible time and in keeping with contractual specifications, with a view to bringing the power plant and the NGL plant into operation and delivering the associated benefits to the Guyanese people as soon as possible.
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).
