Minister Indar reaffirms commitment to reducing electricity costs

THE government’s ongoing efforts in the gas-to-energy project signify significant advancements towards the realisation of a more cost-effective and dependable electricity infrastructure in Guyana.
On Tuesday, during a simple ceremony, the government signed a US $8.6 million contract for the establishment of a national control centre, which is a key component of the project.
Power China Caribbean has been awarded the contract, and the completion of the Centre is anticipated within 384 days.

The agreement was officially signed at the Office of the Prime Minister (OPM), with Chief Representative Dan Shen signing on behalf of Power China Caribbean, and OPM’s Permanent Secretary Alfred King signing on behalf of the government.
Kesh Nandlall, who holds the position of Head of the Executive Management Committee at Guyana Power and Light Inc (GPL), observed the signing.

The equipment for the Supervisory Control and Data Acquisition/Energy Management Systems/Generation Management System (SCADA/EMS/GMS) will be housed in the facility once it is finished.
According to the Minister within the Ministry of Public Works, Deodat Indar, the awarding of the contract was done through an open and competitive tendering process.
Indar recalled: “The totality and the sound effect of all of this work is to give a single promise that we made as a PPP government when we were in opposition. We campaigned to reduce electricity costs by 50 per cent. This entire [load] of work is to deliver on this single promise.”

Further, the Minister told representatives from both the government’s side and Power China that the initiatives being rolled out by the People’s Progressive Party/Civic (PPP/C) administration is not “guess work” but it is “painstaking and crafted” hard work.
The Minister then stressed the importance of the contractors following the project’s specifications and its timeline.
“I want to implore on the contractor to keep on specifications and keep on timeline,” he said.
Indar then explained how the gas-to-energy project will transform Guyana in various ways, such as significantly lowering the cost of manufacturing for companies by utilising its natural gas resources.
He stated: “This is designed to help Guyanese people.”

However, despite this project being a game-changer for the nation, the Minister did note that there are detractors of development who are trying to erode the benefits of the project.

Additionally, Prime Minister Brigadier (Ret’d) Mark Phillips emphasised that in 2025, the PPP/C will deliver on its manifesto promise and the Guyanese people will be able to benefit from reliable and cheap electricity.
He stated: “It will be reliable and as mentioned by Minister Indar the costs will go down. We promise the people that we [will] reduce the cost of electricity by 50 per cent and we will deliver on that promise.”
Speaking to the contractors, the Prime Minister said: “We look forward on signing of this contract to see work start immediately and progress to the completion of this project, so that we are ready to deliver to the people the promise electricity and the necessary comfort that comes with that.”

Together with CNOOC and Hess, its co-venture partners on the Stabroek Block, ExxonMobil is working with the Government of Guyana to advance the gas-to-energy project.
The gas-to-energy project will see a 200-km, 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 powerplant Natural Gas Liquids (NGL) facility that will be built in Wales, West Bank Demerara (WBD).

That pipeline will be landing on the West Coast Demerara (WCD) shore and continue approximately 25 kilometres to the NGL and powerplant facilities.
It has an estimated total cost of US$1.8 billion and is cost recoverable. The powerplant and NGL facilities will be funded by the government.
In December 2022, the government 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 facilities.
The conversion of natural gas from ExxonMobil’s offshore operations to electricity is a key component of the government’s objective to lower energy costs by at least 50 per cent through an energy mix which incorporates gas, solar, wind, and hydropower.
As major groundwork continues for the project, it is expected to be up and running by the first half of 2025 and has a 25-year lifespan.