While much of the attention has been placed on Guyana’s oil development, President, Irfaan Ali recently assured that plans are firming up to unlock new levels of development from the nation’s rich gas reserves. During a recent parliamentary address, Ali noted that gas will play a critical role in Guyana’s future as it will be used to help slash electricity costs and open the gateway for the creation of the nation’s downstream industry.
Central to this vision is the construction of a 300-megawatt combined cycle power plant, poised for completion by 2025, which will significantly lower the cost of electricity to less than five US cents per kilowatt hour. The President detailed the ongoing progress of essential infrastructure to support this initiative, including a pipeline, an integrated power natural gas liquids (NGL) plant, and a transmission line substation, all scheduled for commissioning in 2025.
President Ali also noted the importance of unlocking of Guyana’s downstream industry, a sector encompassing the processing, refining, and distribution of petroleum products. “The Wales development hub (which will be the home for the gas-to-energy project) will be integral to leveraging our natural gas resources, not just for energy production but for stimulating robust growth in industries like manufacturing and agro-processing,” he explained. This hub is expected to create numerous job opportunities, foster new industries, and expand Guyana’s economic base.
Ali also noted his administration’s plans to use additional gas resources by way of a second NGL facility and power plant. By 2025, the gas project is projected to supply 2600 megawatts hourly to the national grid, adequately meeting domestic demand and supporting the burgeoning downstream sector.
In conclusion, President Ali reiterated his government’s commitment to leveraging natural gas not only for domestic energy needs but also for establishing Guyana as a net exporter in the future. The strategy also includes regional collaborations, notably a proposed 3000-megawatt power interconnection system with neighbouring countries such as Suriname, Brazil, and French Guiana.
