A US$526 million loan to Guyana for its Gas-to-Energy project is the first of many deals to come, an official from the United States Export-Import Bank (EXIM) said at an event on Friday.
“We can be, at US EXIM, a major resource for you, whether your business is large, medium or small,” President and Board Chair of the US EXIM Bank, Reta Jo Lewis said at a loan signing ceremony.
The official brought a delegation to Guyana to ink the agreement at Wales, West Bank Demerara. There, an integrated facility is being constructed to process offshore natural gas and generate electricity.
The loan will fund materials exported from the United States, particularly to support the construction of a natural gas separation plant, a 300 megawatt (MW) combined cycle gas turbine power plant, and services related to the gas supply pipeline.
The plants are being constructed by LNDCH4 Guyana, a joint venture involving Lindsayca, a Texas-based company and CH4 Systems, a Puerto Rican small business.
Guyana’s Prime Minister, Mark Phillips, said the government sees the signing as a turning point in Guyana’s history, “The Gas-to-Energy project will create thousands of jobs, many of which will go to the young men and women of Guyana.”
Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh, said the project will help diversify the Guyanese economy. “This will catalyze a quantum leap in the competitiveness and potential competitiveness of the entire non-oil economy.”
Exxon completed the installation of a pipeline in 2024. It will transport gas from the Liza field to shore at a rate of 50 million cubic feet per day (mcf/d) when the project is commissioned later this year.
Natural gas will replace heavy fuel oil as the main source of power generation. The Bank estimates that this will cut annual carbon dioxide emissions by more than 460,000 tonnes. The Guyana government plans to cut the cost of power to consumers by 50% when the project starts.
Read all about the Gas-to-Energy project HERE.
