UNITED States (US) Assistant Secretary of State for Western Hemisphere Affairs, Brian Nichols has confirmed that Guyana has secured preliminary approval for a US$500 million loan from the US Export-Import Bank to fund its Gas-to-Energy project at Wales, West Bank Demerara.

Nichols, during a press briefing by the US Department of State on Monday, said: “In November, the US Export-Import Bank gave initial approval for a $500 million loan guarantee to support a $2 billion US-built gas-to-energy project that represents the largest foreign investment in Guyana’s history.”
The announcement dispels claims made by opposition party, the Alliance for Change (AFC), which previously attempted to cast doubt on Vice-President Dr. Bharrat Jagdeo’s statement about the loan approval.

At the AFC’s press conference last Friday, a reporter questioned AFC executive David Patterson on whether he would retract the party’s claim and issue an apology. Patterson, however, remained resolute, maintaining that the party’s position—that the loan had not been approved—was unchanged.
Nichols’ statement, however, sets the record straight, reaffirming what Guyana’s Vice President had announced.

Dr. Jagdeo had 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.”
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 natural 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.

On completion, the gas-to-energy project will have a significant impact on the country’s economy, attracting sustainable investments across various sectors, and creating numerous job opportunities. The project is slated to be completed by 2025.
The aim is to complete the necessary transmission lines and substations by the end of the year, ensuring a seamless distribution network along the Demerara Berbice Interconnected System (DBIS).

By providing a more reliable and cost-effective energy source, the initiative could drastically reduce the frequency and duration of power outages while also, as part of the energy, cutting the cost of electricity by almost 50 per cent.
Such improvements would not only enhance the quality of life for Guyanese but also foster a more conducive environment for business and industry growth.

ExxonMobil Guyana, along with partners Hess and CNOOC, through their subsidiary Esso Exploration and Production Guyana Limited (EEPGL), has provided an assurance to the government that a minimum of 50 million standard cubic feet of gas per day (mmscfd) will be transported via the pipeline by 2025.

The pipeline will be able to transport a maximum of 130 million standard cubic feet per day. The project offers the dual benefits of reducing energy costs and meeting the increasing electricity demand in Guyana.