PEOPLE’S Progressive Party (PPP) General Secretary Bharrat Jagdeo has firmly said that if Lindsayca/CH4 does not complete its deliverables by April 2025, contractors will face financial penalties.
During a news conference on Thursday, he clarified that the government has not accepted any new timelines for the construction of the Integrated Power/NGL [natural gas liquids] facility aspect of the country’s landmark Gas-to-Energy Project.

“Power should be supplied into the grid from that project by April 2025. If they fail to comply, and we prevail in the arbitration, there will be liquidating damages for the contractor; and the liquidating damages are calculated, I think it’s US$11 million per month,” Jagdeo said.
The massive project is divided into three components: Pipeline, Power/NGL Plant, and Transmission Line/Substations.

The pipeline component includes a 250-kilometre, 12-inch pipeline from two Floating Production, Storage and Offloading platforms (FPSOs), to deliver some 50 MCF/D (1,000 cubic feet per day) of gas to shore, although the pipeline has the capacity for 120-plus MCF/D.
Meanwhile, the NGL component of the project features a 300 MW Combined Cycle and NGL Plant, while the third component will have 85 kilometres of 69 KV and 230 KV transmission lines, three new substations, and upgrades to two other sub-stations.

It was recently disclosed that Lindsayca/CH4 had shifted to a dispute adjudication board, because it was stuck in a deadlock with the Guyana Government over the US$50 million it believed it was due because the Wales, West Bank Demerara project site had been provided to it three months later than expected.

“For every month delayed, the contractor will have to pay liquidating damages of US$ 11 million. We have conceded a three months extension; or we have offered that at the arbitration. So that doesn’t mean that we have accepted that timeline; our timeline is very different, but if they are delayed to the end of the year, then there will be liquidating damages,” Jagdeo further explained on Thursday.

Head of the Gas-to-Energy Project Task Force, Winston Brassington, in a statement on Thursday, said the Government of Guyana-Lindsayca/CH4 December 2022 contract, delivery of the “simple cycle/NGL facilities” was contractually scheduled for delivery on December 31, 2024. Due to delays of three months, caused by Exxon sub-contractors, the GOG has accepted a schedule extension of three months in favour of the contractor.

“The three-month delay resulted from Exxon sub-contractor, GYSBI, being late in completion of site work for the 100-acre site by three months, and Exxon sub-contractor, GAICO, being late with respect to completion of the Material Offloading Facility (MOF) by three months.
“Flowing from the above, it is to be made clear, that the GOG holds Lindsayca/CH4 contractually responsible to deliver the project in “simple cycle” by April 2025,” the official’s statement read.

He pointed out that it is the government’s intent to charge liquidated damages on any delay thereafter at a Liquidated Damages (LD) rate of $377,000/day per the contract. This amounts to US$11.3 million per month.