With the aim of advancing the transition to cleaner sources of energy, the PPP/C Government has set aside $29.4B in the 2022 budget for projects in the energy sector. Major allocations within this amount include $20.8B for the US$900M Gas-to-Energy project and $1.4B for the 33 MWs solar farms for Berbice, Essequibo, and Linden.
During the presentation of his 2022 budget, Finance Minister, Dr. Ashni Singh said this allocation was done to ensure the government meets the growing demand for electricity and reduce the cost of electricity by 50 percent over the next 5 years.
The Senior Minister recalled that following a public expression of interest in September 2021, Government issued an advertisement for the prequalification of firms interested in the transformational Gas-to-Energy project, recognising the potential of natural gas as a transition fuel.
He said this 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. Additionally, Dr. Singh said 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.
He said the project also entails the construction of a 225 km 12” pipeline to transport the guaranteed minimum of 50 million feet per day of natural gas from offshore Guyana to the Wales Development Authority.
Furthermore, the official said ongoing geotechnical and geophysical works for both offshore and onshore operations are advancing with portions already completed.
Dr. Singh said too that an Environmental and Social Impact Assessment is expected to be completed by early second quarter of 2022. Utilising a transparent procurement process, he said 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. Guyana Standard understands that construction is expected to start in the third quarter of 2022 and will be completed by the fourth quarter of 2024.
