Guyana Govt allocates $20.8B for transformational gas-to-energy project

(INEWS)Delivering clean, reliable and cheaper energy to Guyanese citizens and its businesses is a commitment that the People’s Progressive Party/ Civic (PPP/C) government is keen on making good.

It is in keeping with this that in his Budget 2022 presentation, Senior Minister in the Office of the President with responsibility for Finance Dr. Ashni Singh announced that the government has allocated $20.8 billion towards the transformational US$900 million gas-to-energy project.

In his Wednesday presentation under the theme ‘Steadfast against all challenges, Resolute in building our One Guyana,’ the Senior Minister reminded that project will allow Guyana to phase out the use of expensive and carbon-intensive heavy fuel oil and is targeted to reduce costs substantially below the current levels.

“This project encompasses the establishment of a power plant to generate 300MW of power, as well as a Natural Gas Liquids (NGL) plant that will cover domestic demand. The project also entails the construction of a 225 km 12” pipeline to transport the guaranteed minimum of 50 million standard cubic feet per day (mmcfd) of natural gas from offshore Guyana to the Wales Development Authority,” the Senior Minister articulated in the National Assembly.

He went on to say that ongoing geotechnical and geophysical works for both offshore and onshore operations are advancing with portions already completed. In addition, an Environmental and Social Impact Assessment is expected to be completed by early second quarter of 2022.

Utilising a transparent procurement process, it is expected that the firm selected would be able to engineer, procure and construct the Power Plant and NGL Plant, along with related facilities.

Notably, the government had last year invited interested parties to invest in its gas-to-energy project in the Wales Development Zone (WDZ). A public notice from the Ministry of Natural Resources had stated that the WDZ was selected as the landing facility for the pipeline, following the consideration of more than 20 potential locations.

The gas-to-energy project which is expected to come on stream by late 2024, is projected to reduce Guyana’s energy sector emissions. The project will also cut electricity cost by more than half. The cost has long been regarded by the private sector as prohibitive to investments. Hence, Government expects the gas-to-energy project to revolutionise, to significantly improve the ease of doing business in Guyana.

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