In a press conference held yesterday afternoon, President Irfaan Ali provided critical updates on Guyana’s gas-to-shore project. As the president underscored the government’s commitment to advancing the initiative, he noted that despite potential hurdles, including recent [sanctions against the Mohamed’s family and Permanent Secretary, Mae Thomas, ](https://www.guyanastandard.com/2024/06/20/us-sanctions-on-mohameds-no-significant-impact-thus-far-on-economy-pres-ali/ “”)the project will progress without any impacts.
President Ali emphasized that the government’s primary objective is to secure the timely completion of the project, which is poised to transform Guyana’s energy landscape. “As you know, the government of Guyana expects the US EXIM Bank to submit the loan to the EXIM board on or before the third quarter of 2024,” President Ali stated. “We remain hopeful that CH4/Lindsayca will make key deliverables in its first half of next year.”
The project’s funding is bolstered by the 2024 budget, which allocates $80 billion to advance the gas-to-shore initiative and its associated infrastructure, including transmission and distribution upgrades. The government is awaiting a $660 million loan from the United States Export-Import (EXIM) Bank to support these efforts.
In addition to the power plant, the government is working on establishing a Natural Gas Liquids (NGL) storage facility and a marketer for the NGL. “We are also working in a parallel way to have an NGL storage facility and a marketer for the NGL to be advertised shortly,” President Ali mentioned. This step is part of a broader effort to enhance the country’s energy infrastructure and ensure a reliable supply chain for natural gas products.
The project aims to transport natural gas from the Liza oilfield, located offshore in the Stabroek Block, to an integrated gas processing facility at Wales, West Bank Demerara. This development is expected to halve the cost of power, providing significant economic relief to consumers and fostering industrial growth. “ExxonMobil, responsible for the installation of the pipeline, expects its completion by the end of the year,” Ali added. “KPIL is targeting the completion of the transmission line in 2024, with substations potentially operational in the first quarter of the same year.”
The dredging of the Demerara River is another critical component of the project. “Working to the mouth of the west channel to be operationalized, this will require significant dredging and investment,” President Ali explained. “We are looking to see how we can have a viable, sustainable long-term plan in relation to the dredging of the Demerara River to meet the needs of the development that is taking place.”
The gas-to-shore project represents a cornerstone of Guyana’s economic strategy, aimed at leveraging the country’s natural resources to fuel growth and improve living standards.
This facility will establish critical infrastructure for transporting natural gas from the offshore Liza oilfield to Wales, enabling power generation and other commercial uses. “This initiative is crucial for Guyana’s energy independence and economic development,” Ali highlighted. “By replacing heavy fuel oil with cleaner natural gas, we are not only cutting costs but also making a significant environmental impact.”
“This project is not just about reducing energy costs; it’s about securing a sustainable and prosperous future for all Guyanese,” President Ali affirmed, noting that it’s successful completion will mark a significant milestone in Guyana’s journey towards energy self-sufficiency and economic prosperity.
