–as milestone contract signed for transformational Wales gas-to-shore project

GUYANA, on Tuesday, moved one step closer to significantly lowering electricity costs, following the signing of a contract which will result in the construction of the 300-megawatt power plant in an integrated facility with a Natural Gas Liquid (NGL) plant.

“This is the largest project that we would have embarked on as a country, and that brings with it its own challenges, but it also gives us an opportunity to build capacity,” President, Dr. Irfaan Ali said at the significant signing ceremony at the Office of the President, on Tuesday.

The project, the Head of State said, goes beyond power generation to unlocking Guyana’s enormous potential.

“This project is not only about the generation of power and liquids…I’m sure understanding the opportunities that this project will unlock for us as a country is just enormous, from the liquids perspective from energy and building our competitiveness on the energy side,” Dr. Ali said.

The Engineering, Procurement and Construction (EPC) contract for the Wales, West Bank Demerara Gas-to-Shore project, was signed between the Government of Guyana and the US-based partnership CH4/Lindsayca.

The EPC Contract will be supervised by a global supervision firm, Engineers India Limited.

ENERGY MASTER PLAN
President Ali acknowledged that while the US$759 million project is a major accomplishment, his administration is not allowed much time to celebrate given the multitude of transformative projects underway, particularly now with a growing revenue base.

On this note, he assured persons that the gas-to-shore project will not reduce the government’s commitment to hydropower and the pursuit of a diversified portfolio of energy generation to be unparalleled and unmatched in the region.

“It also is linked to our strategic approach on energy that involves beyond our borders, and all of these things will be rolled out as we move forward with unlocking our energy master plan that is national and regional in nature,” Dr. Ali affirmed.

The government, he added: “[Is] very proud that we have done everything within international norms and beyond to bring this project to the end.”

Dr. Ali said this was no simple process from the tendering aspect to the technicality of the project, among other things. So, it could have only been realised through a collaborative effort.

“One of the important things is that on the task force and on the ministry, the process we had many young Guyanese… many, many young Guyanese who were part of this learning process, who were part of this transformative process,” he said.

Dr. Ali also commended Vice-President, Dr. Bharrat Jagdeo, for the role he played in ensuring that the project got to its current stage.

Dr. Jagdeo, in his remarks, said that two years is a relatively short period to put together such a complex project of this nature, and added that it was only possible as a result of the resoluteness that they have been working with.

According to the Vice-President, the government during the entire process, was committed along the entire path to seeing that the project was developed in accordance with the highest international standards.

He said the process of procurement was a transparent one which was open to everyone, and the government even went above and beyond what is normally done.

He said: “Given the importance of this project, its size and its transformative nature, we had to get this right and we believe with this contractor that they will deliver on the project. Timelines are important for us, the quality of the work is important and staying within budget, these are three things that we will look for and monitor carefully.”

United States Ambassador to Guyana, Sarah-Ann Lynch said that the companies within the consortium CH4/Lindsayca have remarkable track records of delivering projects in other countries.

She said: “My hope is that lowering the cost of electricity and improving its reliability will enable growth and manufacturing, add value to agricultural products and allow for serious advances in every sector and every region in Guyana.”

The power and Natural Gas Liquids (NGL) plant will be owned by the Government of Guyana. ExxonMobil is expected to deliver the completed pipeline to the power plant by the fourth quarter of 2024 in order to have commissioning and testing of the plant by the end of 2024.

The project is expected to deliver power at less than half of the current costs, as it was highlighted as a significant step forward for Guyana to achieve energy security and a reduction in energy costs for the expansion of the manufacturing and industrial sectors.