GUYANA’S transformative Gas to Energy (GTE) project is encountering some delays due to ongoing arbitration processes and equipment delivery challenges.
The aim of the approximately $2 billion project is to harness the nation’s natural gas resources to advance sustainable economic development.

Earlier this year, a ruling had been issued between the Government of Guyana and Gas-to-Energy contractor, Lindsayca/CH4. The ruling confirmed that the dispute between the two parties must remain confidential, and both parties have 28 days to decide whether to take the matter to arbitration.
The government moved to arbitration because the contracted company, LNDC4, claims it is owed $50 million for commencing the project late.

“We’re making that decision [on] whether we go to full arbitration, which will be made shortly, because it has to be made before the end of this month. [And] if we go on to arbitration, we’ll inform the public, or if we decide to accept the report,” General Secretary of the People’s Progressive Party (PPP) Dr. Bharrat Jagdeo stated on Thursday.

He told reporters that while the financial implications for the delay have not yet been determined, the government is cautiously working to minimise their impact, while ensuring its realisation.
Given the economic boom occurring across multiple sectors, the government is investing in this massive facility to not only reduce electricity costs by 50 per cent, which will in turn attract foreign investments, but also complement the demand for power.
“We’re planning full steam ahead for the project; itmight be with a delay, but it is happening. It is happening [and] I am pleased about that,” Dr. Jagdeo underscored.

Meanwhile, the government has shortlisted and started negotiations with the German company, Siemens Energy, as the potential firm to operate and manage the power plant component of the GTE project at Wales, Region Three (Essequibo Islands, West Demerara).
This approach, he highlighted, is intended to leverage Siemens’ expertise in this field, ensuring reliable performance and reducing operational challenges.
“We are now negotiating with them because we want them to, if we conclude a contract, they will run the power plant for 10 years or so. We don’t want to have the headache of operating and maintaining the plant. You can get the company that produced the turbine to actually do it. And they’re a big global company,” GS Jagdeo explained.

Furthermore, the government is seeking potential firms to manage the natural gas liquid (NGL) facility that will be responsible for the processing and distribution of by-products like cooking gas, fertiliser and other natural products.
This single largest investment comprises the construction of a pipeline, power plant, natural gas liquids facility, and upgrades to the power distribution network.

US-based company, CH4 Lindsayca, is building out the integrated facility in Wales for US$759 million, while Kalpataru Projects International Limited is establishing the transmission lines and substation needed to deliver electricity.
ExxonMobil Guyana has completed the construction of a pipeline that will allow natural gas to be transported from the offshore Stabroek Block’s Liza oilfield to the integrated gas processing facility in Wales.
Earlier this year, Guyana and the United States Export-Import (EXIM) Bank signed a US$527 million loan to further support the development of the GTE project. (DPI)