THE government has allocated $51 billion in the 2025 national budget for the historic gas-to-energy (GTE) project at Wales, West Bank Demerara, which is set to be launched later this year.

Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh, in his budget presentation to the National Assembly last Friday said that this investment is part of the government’s “broader strategy to maximise the use of Guyana’s natural resources”.
He noted that the GTE project represents a critical step in enhancing the country’s energy security and economic growth.
“The gas-to-energy project, scheduled to be launched this year, is just the first pillar of the government’s broader strategy for gas utilisation.
“In 2024, we collaborated with external advisers to guide the ongoing development of a Gas Monetisation Strategy to define the country’s approach to further monetising offshore gas and opportunities for domestic use and export,” Minister Singh said.
To address the persistent challenges in Guyana’s energy sector, the government has earmarked a total of $88 billion in the 2025 budget, aimed at improving the reliability, affordability, and accessibility of electricity across the country.
The Export-Import Bank of the United States (EXIM) has approved over US$526 million in financing to support the project, which is expected to bring significant economic and social benefits.

The initiative will involve the construction of a 200-kilometre pipeline transporting natural gas from the Liza Destiny and Liza Unity floating production storage and offloading (FPSO) vessels offshore to the Wales facility.

From there, the pipeline will extend approximately 25 kilometres to a Natural Gas Liquid (NGL) plant to be constructed in the region.
Once operational, the GTE project is expected to provide a major boost to the economy by attracting sustainable investments across multiple sectors and creating numerous job opportunities.
The project is targeted for completion by 2025, with efforts currently underway to finalise the necessary transmission lines and substations to ensure a seamless distribution network via the Demerara Berbice Interconnected System (DBIS).

The government has also mandated the operator of the Stabroek Block to conduct a Gas Utilisation Study to optimise the use of both associated and non-associated gas resources.
One of the most anticipated benefits of the GTE project is the expected reduction in electricity costs by nearly 50 percent, which would significantly ease the financial burden on consumers and businesses.

The introduction of a more reliable and cost-effective energy source is also projected to minimise power outages and create a more favourable environment for business expansion.
ExxonMobil Guyana, along with its partners Hess and CNOOC, through their subsidiary Esso Exploration and Production Guyana Limited (EEPGL), has committed to delivering a minimum of 50 million standard cubic feet of gas per day (mmscfd) via the pipeline by 2025.

The pipeline, however, will have the capacity to transport up to 130 million standard cubic feet per day, ensuring the country’s growing energy needs are met.
With a total estimated cost of US$1.8 billion, the GTE project is considered cost-recoverable under Guyana’s existing oil agreements and is expected to have a lifespan of 25 years.