THE increase in both local and foreign direct investments, rapid expansion of housing developments and growing number of visitors to Guyana are among the key factors driving up the demand for energy.
While criticism regarding the economic feasibility and long-term benefits of the Gas-to-Energy project continues to surface, it is clear that this initiative offers the best solution at present to the rising demand and high cost of power in the country.

The Gas-to-Energy project involves delivering gas from the Liza field offshore Guyana to Wales, where it will be processed at an integrated facility. This facility will house a 300-megawatt power plant and a natural gas liquids (NGL) processing plant. The dry gas will be used for electricity generation, significantly cutting costs for domestic consumers, while the NGLs will be commercialised.
At a total cost of about US$1.8 billion, the project is a necessary investment in Guyana’s power generation capacity, at a time of quickly growing demand. It is also a game-changer for Guyana’s energy future, aimed at reducing emissions, improving energy reliability, and addressing the high cost of power.

Guyana currently relies on heavy fuel oil for power generation, which is not only expensive but more environmentally taxing. By transitioning to natural gas, the Gas-to-Energy project will reduce the country’s emissions while providing much-needed relief to consumers by cutting electricity costs by 50%. This is a major step forward, particularly for a country where the cost of power has long been a burden on both households and businesses. Lower electricity costs will also enhance Guyana’s investment environment, allowing local businesses to expand and providing greater room for renewable energy projects to flourish.

Both ExxonMobil and the government of Guyana are making steady progress. ExxonMobil has completed most of its pipeline installation and remains on track to finish this by the end of 2024. The government’s integrated gas processing facility is expected to be completed in 2025.
Government is involved in an ongoing process with the U.S. Export-Import Bank for a US$646 million loan to support the project. Meanwhile, funds from the treasury have been advanced to keep the project on schedule.

The government has been transparent about the Gas-to-Energy project, publishing a variety of planning documents on the Department of Public Information’s website, including feasibility studies, master plans, and other essential materials. This level of transparency helps ensure that the project is both well-planned and accountable to the public.
Critics have raised concerns about potential environmental impacts. While no large infrastructure project is without consequence, the Gas-to-Energy project includes controls to manage risks, and promises benefits that far outweigh any such risks. The Environmental Impact Assessment and project permits are public documents.

Anyone can review and judge holistically the terms governing the project’s development. The government has also assured that another round of documentation relevant to the project will be tabled in the National Assembly.
It is clear that the Gas-to-Energy project has an irreplaceable role to play in Guyana’s energy strategy. No other project can boost power generation at the scale of this project by 2025, while also providing emissions and cost-saving benefits. The evidence overwhelmingly supports the view that this project is a positive development for Guyana.