Guyana has finally received approval for a loan from the US Exim Bank for its landmark gas-to-energy project. This was announced moments ago by Vice President, Dr. Bharrat Jagdeo. While the initial loan request was US$660M, Jagdeo said the full amount was not granted. He noted however that it is still “upwards of US$500M.”
The official said, “The loan will also provide retroactive financing. So if the loan is made available, it will cover financing that the government of Guyana had to make during the period since the project started.”
On Friday, Guyana’s parliamentarians approved $25.3 billion more (about US$121 million) to advance the project which is slated to come on stream next year and halve consumers’ electricity bills. This appropriation took the total parliamentary approvals for the project to approximately US$855 million.
The gas-to-energy project is central to the government’s energy expansion agenda, and is designed to transport natural gas from the offshore Stabroek Block’s Liza oilfield to a Natural Gas Liquids (NGL) facility and a 300-megawatt power plant located at Wales, West Bank Demerara. The facility will convert 50 million cubic feet of gas daily into power, promising a 50% reduction in electricity costs nationwide. This is expected to boost the competitiveness of manufacturing industries and reduce Guyana’s dependence on heavy fossil fuels.
ExxonMobil Guyana was responsible for the laying of a pipeline to transport the gas to the onshore facilities. This has been completed and the next step is now to connect the pipeline to the power plant and NGL facilities.
For its part, Government hired CH4-Lindsayca as contractors for the US$759 million power plant and NGL facility. Construction is expected to be completed in 2025.
