IN a significant move aimed at bolstering Guyana’s energy transformation efforts, the Georgetown Chamber of Commerce and Industry (GCCI) has thrown its support behind the country’s gas-to-energy project, signaling confidence in its potential to drive economic growth and sustainability.

In a letter addressed to Reta Jo Lewis, President of the Export-Import Bank of the United States, the GCCI expressed its endorsement of the project, which seeks funding from the U.S. EXIM Bank.
The initiative, championed by the Guyanese government, aims to leverage natural gas resources to reduce reliance on fossil fuels, lower electricity costs, and promote sustainable energy practices.

The government of Guyana has applied for funding from the U.S.Exim Bank to support the massive energy project.
The project is expected to contribute the country’s energy transition, reduce reliance on fossil fuels, and promote sustainable practices.

“This project is anticipated to reduce electricity cost by approximately 50 per cent – a material change in the cost of electricity for Guyanese citizens and enterprises alike. The GCCI sees this project as having immense potential to drive economic growth, enhance energy security, and promote sustainable development in the Western Hemisphere,” the letter which was dated February 7, 2024, said.

Unlike GCCI, other’s share a different perspective, International Lawyer Melinda Janki wrote to the United States Export Import (US-EXIM) Bank to withhold funding for the project.
Janki, on behalf of public-interest litigants, Elizabeth Deane-Hughes and Vanda Radzik, wrote to the bank on January 12, 2024.

“Consequently, the GCCI wishes to express our deep concern and strong condemnation of certain attempts by a small minority of individuals to discredit the project and discourage the EXIM Bank from providing financial support for this landmark project. The GCCI is especially disheartened to see the vilification of a project that holds significant potential benefits for our nation and its citizens,” the letter added.

At a recent news conference, Guyana’s Vice President Bharrat Jagdeo said Guyanese stand to save over US$100 million per annum as a result of the reduction in electricity prices after the Gas-to-Energy Project comes on stream.
“Over a 10-year period, Guyanese would pay US$1 billion less in electricity bills,” the Vice-President said.

The gas-to-energy project will see a 200-km, 12-inch-diametre 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 that will be built in Wales.

ExxonMobil’s local affiliate, Esso Exploration, and Production Guyana Limited (EEPGL), the operator in the Stabroek Block, and its co-venturers are constructing the pipeline.

That pipeline will land on the West Coast Demerara shore, and continue approximately 25 kilometres to the NGL and power-plant facilities. It has an estimated cost of US$1 billion and is cost-recoverable.

In December 2022, the Government of Guyana and US-based integrated energy solutions group, LINDSAYCA, in partnership with a local firm, CH4 Group, signed a US$759 million contract for the construction of the power plant and NGL facilities.

The conversion of natural gas from ExxonMobil’s offshore operations to electricity is a key component of the People’s Progressive Party/Civic (PPP/C) government’s objective to lower energy costs by at least 50 per cent through an energy mix, which incorporates gas, solar, wind, and “hydro” power.