Two contractors hired by the Guyana Government for the construction of the imminent gas-to-energy project have filed for arbitration over cost overruns to the tune of US$90 million. Queries at the Ministry of Natural Resources, Office of the Prime Minister and the Vice President, Dr. Bharrat Jagdeo to ascertain which of the three contractors initiated legal proceedings, proved unsuccessful.
According to a Reuters report which made the foregoing revelation, it was noted that the landmark project which aims to reduce electricity costs and increase the competitiveness of other industries by 2024, is now delayed until the fourth quarter of 2025.
This news agency previously reported that the project is being tackled in two parts. ExxonMobil Guyana is responsible for building an approximately US$1B pipeline that will connect to the Liza Phase One and Two Projects in the Stabroek Block. It will transport up to 50 million standard cubic feet per day of natural gas to onshore facilities at the Wales Development Site. Guyanese authorities have said they will pay ExxonMobil Guyana US$55M each year in recovery costs for the massive gas pipeline.
To complement that aspect of the project, the Government of Guyana is responsible for the establishment of integrated onshore facilities. This includes a 300 megawatts (MW) power plant and a natural gas liquids (NGL) plant. It hired CH4/Lindsayca for the engineering, procurement, and construction (EPC) of the facility to the tune of US$759 million. The administration also applied to the Export–Import Bank of the United States (US EXIM Bank) for GY$134 billion (US$646 million) to offset some of the US$759M price tag.
Engineers India Ltd (EIL) was also hired at a cost of US$22 million to supervise works by CH4/Lindsayca.
