Gas to Energy project moving forward; contingencies in place – VP Jagdeo affirms
– US EXIM Bank completes independent assessment
The government is moving ahead with its flagship project– the Gas-to-Energy development at Wales, West Bank Demerara (WBD).
A US$660 million loan from the US EXIM Bank is being sought by the government and according to Vice President, Dr Bharrat Jagdeo, an independent environmental assessment of the project has been completed.
He provided an update to the media during a recent press conference held at the Office of the President on Thursday.
This is seen as a positive development in light of attempts by certain local non-government organisations (NGOs) to impede the project in collaboration with foreign organisations.
“I think as soon as that report is ready, it will go to the board. I don’t know exactly when, but I believe it may be in a month or two… Right now, the project is moving forward, and we’re paying for it from our resources,” Dr Jagdeo stated.
Dr Jagdeo continued to give assurances that the project will not be derailed due to any delays in securing a loan.
The energy project aims to deliver 300 megawatts (MW) of power, providing affordable and stable electricity to the people of Guyana.
Additionally, the project is expected to transition the country from a net importer to a net exporter of cooking gas, marking a significant milestone in the nation’s energy independence.
The vice president reaffirmed the government’s commitment to seeing the completion of the project, with plans to repay the project’s costs from the proceeds generated by the sale of the liquids
“We have a number of alternatives. I explained in the past that we are not a party or a government that doesn’t have contingencies. This project will be built.
The Gas to Energy project will be completed…We will be able to pay back for this project even from the proceeds of the sale of the liquids. We are firm in that. It’s going to happen,” the vice president declared.
The gas-to-energy is set to bring about substantial benefits, not only in terms of power generation but also in transforming the energy landscape. The energy cost is expected to be reduced by 50 per cent when the power plant is operational.
The multi-million loan will be used to fund the installation of transmission infrastructure and the construction of an integrated gas processing facility.
This facility will consist of a 300-megawatt (MW) power plant and a natural gas separation plant.
It will receive offshore natural gas transferred through a pipeline being installed by ExxonMobil.