BREAKING: Wales gas-to-energy, Guyana’s largest-ever project, finalised for continued national transformation
Representatives of Guyana and the contracting company sign the agreement.
Representatives of Guyana and the contracting company sign the agreement.

FOLLOWING an extensive process to bring cheaper electricity to Guyanese and complete the promise of strengthening the country’s energy production through using different energy types, President, Dr Irfaan Ali, on Tuesday, signed a historic agreement for the Wales, West Bank Demerara (WBD) gas-to-energy project.

At his Shiv Chanderpaul Drive office, Dr Ali, joined by members of his Cabinet, the diplomatic core and other stakeholders including from the private sector, said this project is the largest-ever undertaken in Guyana which will also ensure the country’s production capacity is more efficient. The President said the project is linked to the strategic approach to energy which goes beyond Guyana’s borders.

Dr Ali praised the involvement of both local and international stakeholders, including the US Embassy in Guyana, for pushing the project forward.

APPLAUSE: President Ali joined by US Ambassador Lynch and other national and private sector representatives following the historic signing

US Ambassador Sarah Ann Lynch, speaking at the event, said the company has an excellent track record. She said that the advancing of the energy mix will help to push the country’s national development.

She noted satisfaction that a separate firm was hired to have oversight of the project which will ensure higher quality for Guyana. With this, she noted, more US businesses will look at Guyana for their investment.

At the signing, Vice President, Dr Bharrat Jagdeo said that two years is relatively short for putting together a project of this nature but there has been aggressive work put behind it from the public servants involved. He said there was a commitment of ensuring the procurement and environmental-impact processes were fully transparent. This project, the VP added, helps to decarbonise Guyana’s energy sector with the hope of cutting emissions by 70 per cent.

In late November, the Environmental Protection Agency (EPA) announced its approval for the historic project following reviews of Environmental assessments.

The EPA said the project, which includes the development of a Natural Gas Transport Pipeline, Materials Offloading Facility and Natural Gas Liquids Plant, had received the environmentally-sound seal of approval.

In its notice, the EPA said the Environmental Assessment Board reviewed the Environmental Impact Statement (EIS) and Environmental Impact Assessment (EIA) for the project, and declared both acceptable in accordance with section 11 (13) of the Environmental Protection Act.

According to the agency in its November notice, technical reviews, recommendations from experts and views expressed by members of the public during the consultation process, along with the submitted EIA, all indicate that the project is in the public interest and environmentally-sound.

In early November, President Ali disclosed Cabinet’s ‘No Objection’ to the US-based partnership, CH4/Lindsayca for the construction of the 300-megawatt gas-to-energy plant. Some nine firms were, earlier this year, prequalified to bid on the EPC contract and a Request for Proposals (RFP) was issued to the prequalified bidders. At the closing date of September 13, some five bids were received with CH4/Lindsayca emerging number one.

With Cabinet’s ‘No Objection’, the stage was set for the conclusion of the Engineering, Procurement and Construction (EPC) contract, which will be supervised by global supervision firm, Engineers India Limited.

December 2024 is the set timeline for the handing over of the completed power plant to the Government of Guyana. Meanwhile, ExxonMobil Guyana is expected to deliver the completed pipeline to the power plant by the fourth quarter of 2024, and to have commissioning and testing of the Plant by the end of 2024.

On The project is set to deliver power at less than half of its current cost, President Ali had said. The Head of State noted that ordinary families will see a substantial reduction in the cost of electricity.

Last week, VP Jagdeo disclosed during his press conference that following the EPA’s approval, the signing of the EPC paves the way for a 50 per cent reduction in the cost of electricity production in Guyana within the next two years.

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