BUDGET 2022: Most of $29.4 B energy sector budget goes to Wales gas-to-energy project
A total of $29.4 billion has been allocated to the energy sector in 2022 and a majority of that sum- a total of $20.8 billion- will be channelled towards the development of the Wales Gas-to-Energy project.
This is according to Finance Minister Dr. Ashni Singh who has been presenting the 2022 National Budget to the National Assembly on Wednesday.
Guyana’s electricity demand will triple in the next five years and the government is looking to meet the challenge, not by burning more diesel and heavy oil, but through natural gas and hydropower.
Dr. Singh also reminded the National Assembly that the government is pursuing its goal of reducing the cost of electricity by over 50 per cent in the next five years.
In pursuing this agenda, the government will be advancing works on the gas-to-energy project at Wales on the West Bank of Demerara (WBD). This will allow the government to use some of the natural gas produced offshore Guyana to help meet electricity needs.
The pipelines coming onshore for this project will be landed at Best/Crane area on the West Coast of Demerara. Subsequently, those pipelines have to be taken to Wales on the West Bank of Demerara.
Dr. Singh also reminded that works are expected to start at the Amaila Falls hydropower project, which promises to boost energy supply with hydropower. Construction should start this year and end by 2027.
Additionally, the government plans to spend a further $1.4 billion for solar power farms in Berbice, Essequibo and Linden. And, $1.6 billion is budgeted for a parallel transmission line linking Kingston and the New Sophia substation, and other works with the Guyana Power and Light (GPL).