US may consider final approval of US$646M gas project loan to Guyana in July

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Kemol King
Kemol King is an independent journalist with six years of experience in Guyana's media landscape, contributing to OilNOW on a freelance basis. He covers the oil & gas sector and its impact on the country's development.

The Export-Import Bank of the United States (EXIM) may consider final approval of a loan to Guyana, valued at approximately US$646 million. The loan is meant to support the Gas-to-Energy project, a landmark venture the Guyana government hopes will slash emissions and facilitate lower electricity rates for consumers. 

The Bank posted environmental assessments and supplemental reports associated with the project on June 13 and has a public registry for complaints and concerns. However, submitters may request that their complaints be withheld from the registry. The Bank said the documents “must be made available to the public for at least 30 days prior to EXIM consideration for final approval.”

That would make July 13 the expected date of consideration for final approval of the loan request if complaint(s) do not prolong the process. 

The US$646 million amount is indicated in a government document, labeled as foreign financing for the project. Guyana Vice President Bharrat Jagdeo has said the U.S. is fully supportive of the project. The loan is intended to support expenses associated with the Gas-to-Energy project, primarily for a US$759 million job by a U.S. consortium (CH4-Lindsayca) to build an integrated gas processing facility. 

The facility, being pursued by the Guyana government, will receive natural gas from the Liza field offshore Guyana, transported through a pipeline being installed by ExxonMobil. The project will use natural gas for power generation, as well as for products to sell to regional neighbors. 

Given the time taken by the EXIM Bank to consider the loan request, the Guyana government started funding the project from its treasury. The project is expected to be completed for first gas in 2025. 

The Bank made a US$2 billion package, including direct loans, loan guarantees and insurance products, available to Guyana in 2022 to finance sale(s) of U.S. exports to Guyana. The package is meant to support a variety of potential development projects.

Read more about the Gas-to-Energy project here: Guyana’s Gas-to-Energy project (The basics) | OilNOW

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