EARLIER this week, President, Dr. Mohamed Irfaan Ali, presided over the signing of the US$759 million contract for the construction of the integrated Natural Gas Liquids (NGL) Plant and the 300-megawatt (MW) combined-cycle gas turbine (CCGT) power plant at Wales, West Bank Demerara, Region Three. President Ali said that the gas-to-energy (GTE) project will unlock the country’s new energy mix, a significant step forward for a nation that has suffered from energy insecurity in the past.

The GTE project will provide economic opportunities for Guyana and is a transformational initiative being undertaken by the government. President Ali stated at the signing that, “[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.”

The broader energy masterplan for Guyana is both regional and national in nature, and further solidifies Guyana as an emerging leader in energy production.
According to Vice-President, Dr. Bharrat Jagdeo, the government is committed to making sure the GTE project is developed in accordance with the highest international standards, through the assessment, procurement, engineering, tendering, and evaluation stages.

This is a critical call out because bolstering Guyana’s commitment to sustainable oil and gas development should be top priority.
Vice-President Jagdeo highlighted in his remarks: “[Given] the importance of this project, its size and its transformative nature, we had to get this right and we believe that with this contractor LINDSAYCA/CH4 combination, that they will deliver on the project.”

The consortium of LINDSAYCA and CH4 will be leading the engineering, procurement and construction (EPC) process for the project, which encompasses everything from now up until the plant is finished and operational.

With the GTE project, electricity costs are predicted to fall by more than 50 per cent with additional gas left over for industrial uses and other sectors. Bringing the plant online will be a crucial part of meeting the rapidly growing demand for electricity as Guyana’s economy develops. Demand in Guyana is expected to triple in the next five years as the economy continues its fast-paced growth.

Gas will provide a vital source of reliable and cleaner energy near-term and help renewables like hydropower and solar in the long-term. Rural households in Guyana will benefit greatly from the development of infrastructure to expand access to electricity.
The government has cited that the project will set a precedent by unlocking more US investments for Guyana, which President Ali deems as a demonstration that Guyana’s investment climate is seen as consistent, predictable, and fair.

According to reports, the wholesale cost of the electricity produced should be less than five US cents per kilowatt-hour, including the pipeline, operations and maintenance.
The pipeline will transport 50 million standard cubic feet per day of associated gas onshore to be processed, enough to meet power generation and other industrial needs.

Additionally, Vice-President Jagdeo also highlighted at the signing that, “[This] project will allow us to decarbonise the energy sector along with hydro coming soon and solar panels already tendered for to triple installed capacity and cut emissions by 70 per cent.”

Natural gas is used globally in tandem with renewables because it can very quickly come online or offline, meaning it can rapidly fill gaps left by intermittent sources of electricity like solar when needed.
As Guyana’s gas sector matures, the government is making it clear that GTE is an investment in energy independence, lower electricity costs, and diversification away from imported fossil fuels.

If additional gas reserves are discovered, there could also be potential for Guyana to become a significant player in the lucrative global gas trade and secure both domestic supplies while supporting the energy needs of neighbours and allies—another testament to how far Guyana has come as an emerging producer and the key role it will play in the future of the region and globe.