US-commissioned consultants found Gas-to-Energy feasible – VP Jagdeo
US-commissioned consultants have confirmed that Guyana’s landmark Gas-to-Energy project is technically and environmentally feasible, Vice President Dr. Bharrat Jagdeo said recently.
The findings follow extensive due diligence carried out on the project by the U.S. Export-Import (EXIM) Bank as it prepares to present Guyana’s loan request to its Board by October in support of the project. This loan will be instrumental in funding the development of the project’s onshore component, which will consist of a 300-megawatt (MW) power plant and natural gas liquids (NGL) processing plant.
The technical and environmental assessments conducted by the consultants have validated the project’s ability to meet international standards. The positive outcome of the review comes after the EXIM Bank employed experts to evaluate various aspects of the project to ensure its viability. With this step completed, the loan application will soon face the Bank’s Board.
Even as the loan awaits approval from partners in the United States, project development activities are ongoing, thanks to injections from the treasury. The Gas-to-Energy project will be delivered in 2025, in keeping with the Government’s promise to the people.
The Government of Guyana remains steadfast in its commitment to delivering the transformative Gas-to-Energy project, which is set to significantly reduce the cost of electricity and improve the quality of life for all Guyanese. The Government has also invited proposals for phase II of the project, which will expand Guyana’s power generation capacity, allowing it to become an energy exporter. This monumental undertaking not only addresses the energy needs of the nation but also allows the country to become an active contributor to regional energy security.
The onshore facility, located in Wales on the west bank of the Demerara River, is expected to cost around US$759 million. It is being developed by LNDCH4, a joint venture between CH4 and Lindsayca, and will produce both electricity and natural gas liquids (NGL). Though Guyana’s government has been funding the project from its treasury, the EXIM Bank loan will help offset a significant portion of the costs.
With the technical groundwork laid and financing mechanisms nearing approval, the Gas-to-Energy project represents a critical step in Guyana’s transition to a more sustainable and cost-efficient energy future.