ENGINEERS India Limited (EIL) has secured a US$22 million contract to provide consultancy services for the construction of a 300-megawatt combined-cycle power plant and natural gas liquids (NGL) plant at Wales, West Bank Demerara.

India’s Minister of Petroleum and Natural Gas and Minister of Housing and Urban Affairs, Hardeep Singh tweeted on Thursday: “As part of this US$22 million assignment, EIL will provide Consultancy Services for setting up the integrated plant, and managing the engineering, procurement and construction of the project on behalf of the Guyanese government.”

He said, too, that the award of this contract means that India’s ability and prowess will script another global success story.

“The gas-to-energy project is expected to deliver power at less than half of the current costs.  Project generation costs, taking into account payment for the pipeline, operations and maintenance (O&M), and capital cost recovery shall total less than five US cents per kilowatt-hour,” Guyana’s President, Dr. Irfaan Ali said in a virtual message on Thursday.

Contractor, CH4/Lindsayca, was ranked Number One to construct the 300-MW combined-cycle power plant and natural gas liquids (NGL) plant.

President Ali said that progress on this project is a significant step forward for Guyana, as it sets the stage for the nation to achieve energy security, and a reduction in energy costs for the expansion of the manufacturing and industrial sectors.

“The ordinary families, and the ordinary people can feel a substantial reduction in the cost of electricity in their pockets and in their households. Just for reference, a family at the end of this project that now pays $20,000 per month in light bill or electricity costs will see that cost coming down to $10,000,” the Head of State said.

In the initial project summary, which was submitted in 2021 to the Environmental Protection Agency (EPA), ExxonMobil Guyana said that the project is expected to be executed in several phases.

The project will see the construction and operation of a pipeline from the Liza Phase One and Liza Phase Two Floating, Production, Storage and Offloading (FPSO) vessels to an onshore NGL and Natural Gas processing plant.

The document noted that this pipeline will transport approximately up to 50 million standard cubic feet per day of dry gas to the NGL plant.