Gov’t spends US$400M on Gas-to-Energy project as it awaits final loan approval

The Gas-to-shore energy development in Wales on the West Bank Demerara (WBD) is making significant progress, with the government allocating a substantial US$400 million from its resources to advance the project.

Dr Bharrat Jagdeo, general secretary of the ruling People’s Progressive Party (PPP), confirmed during a press conference at Freedom House, in Georgetown that the project is moving forward despite delays in securing a US$660 million loan.

Additionally, the Senior Minister within the Office of the President, with responsibility for Finance, and Public Service, Dr Ashni Singh, is scheduled to meet with the US EXIM Bank executives to advance this request in the coming.

“We have, from our resources…have paid about US$400 million, more than half of the project [cost]. That’s even better for us. Now, we can get reimbursed for it because of the way it is structured,” the general secretary disclosed.

This highly anticipated project will see a 200-kilometre pipeline bringing gas from the Liza Destiny and the Liza Unity Floating Production fields onshore. Upon arrival at this West Coast Demerara facility, the pipeline will continue for approximately 25 kilometres to the Natural Gas Liquid (NGL) plant to be constructed in Wales.

Upon completion, the Gas-to-energy project will have a significant impact on the country’s economy, attracting sustainable investments across various sectors and creating numerous job opportunities.

“The project will be done, even if it means, funding it from our own budget,” Dr Jagdeo underscored.

The cost of energy is expected to decrease by 50 per cent, resulting in more affordable and stable electricity for the people of Guyana.

The government has partnered with ExxonMobil to develop the necessary infrastructure and facilities to transport and process the gas for power generation and other applications.