Guyana’s landmark gas-to-energy project has secured a significant allocation of $80 billion in the 2024 budget. This was disclosed today by Finance Minister, Dr. Ashni Singh during his presentation in the National Assembly, currently housed at the Arthur Chung Conference Centre (ACCC).
This allocation is in addition to the $24.6 billion already invested in the project’s startup, which encompasses the construction of an integrated Natural Gas Liquid (NGL) plant and a 300-megawatt combined cycle power plant in Wales, West Bank Demerara (WBD).
The gas-powered plant is set to be linked to a 225-kilometer pipeline, drawing gas from the Liza Destiny and Liza Unity floating production, storage, and offloading (FPSO) vessels operated by ExxonMobil in the Stabroek Block.
This project includes a 200-kilometer subsea pipeline offshore, connecting the FPSO vessels to the West Coast Demerara shore, and extending 25 kilometers to the NGL plant at Wales. The 12-inch-wide pipeline is designed to transport approximately 50 million standard cubic feet (mscf) of dry gas per day to the NGL plant, with the capacity to reach 130 mscfpd.
The NGL and 300 MW power plant components are projected to cost US$759.8 million, with financing sourced from budgets and loans, including a US$660 million loan from the Export-Import (EXIM) Bank of the United States. Vice President Dr. Bharrat Jagdeo affirmed the Exim Bank’s commitment in addressing previous concerns about delayed approval. He assured that the financial institution’s technical team is in the process of conducting a thorough evaluation. In the meantime, Guyana’s financial commitments for the project would be covered by the Treasury.
The gas-to-energy project anticipates a 50 percent reduction in national electricity expenses and increased competitiveness across various industries. An annual payment of US$55 million to ExxonMobil for pipeline amortization is part of the financial arrangement.
