The Wales Gas-to-Energy project, touted as one of Guyana’s most transformational projects, will advance as the government budgeted $43.4 billion to facilitate construction of power plant and associated facilities there.
This was announced by Finance Minister Dr. Ashni Singh during his presentation of the 2023 National Budget on Monday.
The Wales Gas-to-Energy project is the single largest investment made in Guyana’s electricity sector and promises to slash local energy costs in half once the project is onstream.
Overall, the project is pegged at more than US$1 billion.
Through this project, a natural gas liquids (NGL) and a power plant will be constructed. Natural gas produced offshore in the prolific Stabroek Block will be brought onshore to fire those plants.
In December, a contract was inked for the engineering, procurement and construction of the Guyana integrated natural gas liquid plant and a 300-megawatt power plant. And government set up a new state-owned company, the Guyana Power and Gas company, to manage this project.
And Dr. Singh reminded fellow lawmakers that this project is a key part of Guyana’s energy transition efforts, moving from environmentally-unfriendly fossil fuels to more renewable energy sources.
In that vein, he highlighted that the government will issue a Request for Proposals for the restart of the Amaila Falls Hydropower Project (AFHP) while other hydropower projects will be pursued.
Other solar power projects, including the significant Hinterland Electrification Project, will be funded too. Some $1.8 billion is budgeted specifically for the hinterland project, which will see some 30,000 households in hinterland and riverain areas get solar PV lighting systems.
