–Vice-President Jagdeo affirms

VICE-PRESIDENT Bharrat Jagdeo has expressed optimism that the government will secure its request for a loan from the Export–Import Bank of the United States (U.S. Exim Bank) to fund Guyana’s monumental Gas-to-Energy Project being developed at Wales, Region Three (Essequibo Islands-West Demerara).

Dr. Jagdeo, during his weekly news conference held at the Office of the President on Thursday, told reporters approval for the loan could be expected by the second quarter of this year.

The country is seeking a US$646 million loan from the U.S. Exim Bank to advance works on the premier project which is expected to contribute to the country’s energy transition and promote sustainable practices.

Despite the overarching benefit of the project, there have been consistent attempts to stop it from moving forward.

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.

However, Dr. Jagdeo said the government remains committed and “despite every attempt to kill this project” the government will forge ahead with its plans to see the project’s success.
“We have a great working relationship with the U.S. Exim Bank. We’ve had bipartisan support on this loan…the gas to energy will be built,” the Vice-President said.

He further explained that the bank is doing its due diligence, noting: “With each funding agency, they hire their own consultants to come and review the project…we had great meetings, they review everything on the project, environmental design, everything.”

It is the Vice-President’s firm view that many of the “naysayers” do not comprehend these processes.

The Vice-President had previously told the media that 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.

The Gas-to-Energy Project will see a 200km 12-inch diameter pipeline channelling 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 be landing 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.