IN a groundbreaking development for the people of Guyana, Vice-President Bharrat Jagdeo recently announced during a press conference at the Office of the President that the Gas-to-Energy Project is poised to deliver significant economic benefits, potentially saving Guyanese citizens over US$100 million annually once the project comes online marking a pivotal moment in the nation’s pursuit of sustainable and affordable energy solutions.

Vice-President Jagdeo underscored the transformative impact of the Gas-to-Energy Project, emphasising that the reduction in electricity prices could result in a remarkable US$1 billion less in electricity bills over a 10-year period. This ambitious initiative stands to bring substantial financial relief to households and businesses, aligning with the government’s commitment to fostering economic development.

Despite these promising prospects, a recent attempt by a group of Guyanese citizens to halt the project has sparked controversy. International Lawyer Melinda Janki, representing public-interest litigants Elizabeth Deane-Hughes and Vanda Radzik, sought to withhold funding for the project from the United States Export Import (US-EXIM) Bank. In response, Vice-President Jagdeo dismissed their efforts as misguided, highlighting the tangible benefits the Gas-to-Energy Project would bring to the nation.

Vice-President Jagdeo asserted, “These individuals have done nothing for this country, and their opposition seems to stem from a lack of understanding of the project’s potential.”

He reiterated that the Gas-to-Energy Project aims to deliver cheaper electricity not only to the residential sector but also to the business community, fostering economic growth and sustainability.

Understanding the scope of the Gas-to-Energy Project reveals its complexity and transformative nature. The project involves the construction of a 200km 12-inch diameter pipeline, channeling natural gas from the Liza Phase One and Liza Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels to a power plant and Natural Gas Liquids (NGL) facility in Wales.

ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL), and its co-venturers are at the forefront of this pipeline construction.

This ambitious initiative, with an estimated cost of US$1 billion, gained further momentum through a partnership between the Guyana government and US-based integrated energy solutions group LINDSAYCA, along with local firm CH4 Group. In December 2022, they signed a US$759 million contract for the construction of the power plant and NGL facilities.

Crucially, the Gas-to-Energy Project aligns with the People’s Progressive Party/Civic (PPP/C) government’s commitment to lowering energy costs by at least 50 per cent. This vision involves a comprehensive energy mix, incorporating gas, solar, wind, and hydro power. As Guyana looks towards a future of sustainable and affordable energy, the Gas-to-Energy Project stands as a testament to the government’s dedication to fostering economic development and improving the lives of its citizens.

Beyond the significant cost savings, the Gas-to-Energy Project promises environmental and social benefits. By replacing heavy fuel oil with natural gas, the project is poised to contribute significantly to Guyana’s environmental goals by reducing greenhouse gas emissions.

Additionally, the project is expected to create over 5,000 jobs during construction and operation, providing much-needed employment opportunities for Guyanese citizens.

While challenges remain, the Gas-to-Energy Project represents a significant stride forward for Guyana’s energy sector and its overall economic development. As the nation embarks on this ambitious journey, constructive dialogue among all stakeholders is crucial for ensuring the project’s success. By working collaboratively, Guyana can harness its natural resources to create a more prosperous and sustainable future for generations to come.