The Government of Guyana (GoG) has officially opened the Request for Proposals (RFP) for Phase II of the Gas-to-Energy (GTE) Project. The RFP, launched on September 18, 2024, invites qualified firms to submit proposals to design, finance, and operate the next phase of the project, based on a 20-to-25-year Power Purchase Agreement (PPA).
Phase II is expected to build upon the initial success of Phase I, which involves the delivery of 50 million standard cubic feet per day (MMSCFD) of gas. For Phase II, the government anticipates an additional 75 MMSCFD, filling the 250 KM pipeline to Wales. The project will include the development of a 250 MW combined-cycle power plant, capable of generating 2,100 gigawatt-hours (GWH) of electricity annually, alongside a natural gas liquids (NGL) facility that will produce 6,000 barrels of propane, butane, and gasoline daily.
The RFP outlines the requirement for private sector investment in the project, with ownership and financing fully under the responsibility of the selected bidder. The investor will recover costs through the sale of electricity via the PPA and the monetization of NGLs. At the end of the agreement term, the entire facility will revert to the Government of Guyana at no cost.
The government has set stringent evaluation criteria, including experience in Engineering, Procurement, and Construction (EPC) for similar projects. Financial proposals must detail projections on revenue, expenses, and investment returns, alongside key scenarios related to payback through both PPA revenues and NGL sales. Interested firms must also provide details on local content plans, outlining how they will incorporate local workforce and materials into the construction and operational phases of the project.
Responses to the RFP must be submitted by November 14, 2024. Interested parties are required to register and obtain the RFP document by contacting the Office of the Prime Minister, with additional details available through the Permanent Secretary. A workshop will be held during the RFP period to address any questions and provide further clarification.
This major infrastructure project is seen as a critical step toward realizing Guyana’s energy ambitions and driving industrial development, particularly in the areas of electricity production and NGL processing. The project is expected to significantly contribute to the country’s sustainable economic growth while reducing energy costs and improving access to reliable power.
