MINISTER of Natural Resources Vickram Bharrat says the Gas-to-Energy (GTE) project, currently underway, will significantly bolster the country’s ability to expand its manufacturing sector, as the reliable and affordable energy it promises will open new doors for industrial growth.

Speaking at the launch of Massy Gas Products’ Air Separation Unit (ASU) last Thursday, the Minister emphasised the role the GTE project will play in transforming Guyana’s economy, especially by reducing electricity costs and fostering new opportunities in key industries.

According to him, high electricity costs have been a significant factor driving manufacturers away from Guyana, limiting industrial growth and competitiveness.

“The cost of power generation and the reliability of power generation in Guyana is an issue. It is not because people don’t want to come and invest in Guyana. But it is because of the high operational costs which will eat away at their profitability that they don’t want to come. And in addressing that, we have started what I deem will be the most transformational project that we will ever witness in our country, that is, the gas-to-energy project,” he said. Minister Bharrat acknowledged that Guyana has the highest power generation costs in the region, at over 20 US cents per kilowatt-hour. He said this is a significant barrier for businesses, especially those in energy-intensive industries like manufacturing. He compared Guyana’s energy costs to those of neighbouring countries that generate electricity at less than 10 US cents per kilowatt-hour.

He reasoned: “There is no way you can compete when your cost of power is so high. When you’re generating electricity at over 20 US cents per kilowatt. How can you compete with a country that is generating at less than 10 US cents per kilowatt? It’s impossible. And if I’m an investor, I’ll be crazy to be investing in a country where the energy cost is over 20 cents, and there is a country next door that is welcoming me as well, but they are 10 cents…”

Regardless of the naysayers and those who may make statements against the GTE project to gain cheap political points, Minister Bharrat said that all Guyanese will benefit from this project, and this project is going to transform the landscape of our country.

Together with Hess Guyana Exploration and CNOOC Petroleum Guyana, its co-venture partners on the Stabroek Block, ExxonMobil Guyana is working with the government to advance the GTE project. The Gas-to-Energy Project will see 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 Natural Gas Liquids (NGL) facility that will be built in Wales, WBD.

That pipeline will be landing on the West Coast Demerara (WCD) shore and continue approximately 25 kilometres to the NGL and power plant facilities.

The project has an estimated total cost of US$1.8 billion and is cost recoverable. The Gas-to-Energy Project is expected to be up and running by the end of the first quarter of 2025 and has a 25-year lifespan. 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.