-VP Jagdeo

VICE-PRESIDENT, Dr Bharrat Jagdeo has yet again reaffirmed the transformative potential of Guyana’s gas-to-energy project. Speaking at a People’s Progressive Party (PPP) press conference at Freedom House last week, he emphasised the importance of the project and its long-term impact on the country.

Jagdeo, who is also the General Secretary of the PPP, described it as a major milestone in the country’s development. Addressing reporters at the press conference, Dr Jagdeo shared that the initiative would deliver enormous financial savings and energy benefits to citizens once completed.

“When that project is completed—and it will be completed—it will save us, the consumers in Guyana, 250 million U.S. dollars per year,” Dr. Jagdeo stated. In his statement, Jagdeo highlighted that the anticipated savings would stem from a major reduction in electricity rates. The price of electricity is set to decrease from $0.22 per kilowatt hour to $0.11 per kilowatt hour, halving the cost. This substantial drop in rates is expected to alleviate financial pressures on both households and businesses. The reduction is expected to provide a direct economic benefit, boosting the financial well-being of Guyanese citizens by lowering their utility bills. This measure could have a ripple effect, stimulating greater economic activity and improving overall living standards.
The $2 billion gas-to-energy project is designed to pay for itself within just eight years through the savings it generates. Dr Jagdeo pointed out that this level of self-sustainability makes the initiative not just impactful but also ensures a sound, long-term financial plan.

However, the benefits of the gas-to-energy project go beyond cheaper electricity. Dr. Jagdeo highlighted the additional revenue potential from the gas liquids extracted during the process. These by-products, which include cooking gas, are expected to generate another $250 million annually if sold at the current market price. “That comes to us for free, because when we clean the gas, that is the cooking gas and everything else,” he explained.

With the combined benefits from electricity savings and gas-liquid sales, the project could deliver between $250 million and $500 million annually in economic value. Dr. Jagdeo emphasised that these outcomes reflect the PPP government’s ability to negotiate greater returns for Guyana from the country’s oil and gas resources. “We have gotten more value for the people of Guyana,” Dr. Jagdeo said. He added that despite some delays in the project, its completion is certain and will have far-reaching benefits.

The gas-to-energy project remains just one aspect of the government’s strategy to leverage Guyana’s natural resources for sustainable development. Once operational, it is expected to transform the nation’s energy sector, lower costs, and generate substantial revenue for all Guyanese.