THE Board of the United States’ Export-Import (EXIM) Bank has approved a just over US$500 million loan for Guyana’s flagship gas-to-energy project at Wales, West Bank Demerara, People’s Progressive Party (PPP) General Secretary and Guyana’s Vice-President, Dr. Bharrat Jagdeo has said.

Dr. Jagdeo at his weekly news conference at the PPP’s Freedom House, Georgetown headquarters told reporters that following this approval, Guyana’s application will be sent to the US Congress for a mandatory 30-day notification period.

He explained that thereafter, “it will be returned to the board of the Exim-Bank for final approval. So, that is where we stand at this point in time.”

Initially, the government sought $US646 million to accelerate works on the flagship project but will likely only receive up to $500 million.

He stated that this cash will only cover US exports.

He stated that some of the funds will be used to support US exports, while the remaining would go towards retroactive payments for the 300-megawatt electricity facility and natural gas liquids plants.

Already Guyana has committed to advancing the project, allocating $400 million from its own budget.

This highly-anticipated project will see a 200-kilometre pipeline bringing gas from the Liza Destiny and the Liza Unity Floating Production fields onshore. Upon arrival at this West Coast Demerara facility, the pipeline will continue for approximately 25 kilometres to the Natural Gas Liquid (NGL) plant to be constructed in Wales.

Upon completion, the gas-to-energy project will have significant impact on the country’s economy, attracting sustainable investments across various sectors, and creating numerous job opportunities.

The government has partnered with ExxonMobil to develop the necessary infrastructure and facilities to transport and process the gas for power generation and other applications.