By Sharda Bacchus
The Export-Import Bank of the United States (EXIM) financing of US$526 million to support the transformative gas-to-energy project is a “game changer” as the country builds out a competitive non-oil economy, President and Chair of EXIM, Reta Jo Lewis said.
Lewis, who is currently visiting Guyana, signed the agreement with Finance Minister, Dr Ashni Singh at the project’s site in Wales, West Bank Demerara on Friday.
The signing follows EXIM approval on the loan on December 26, 2024.
In her remarks, Lewis highlighted the important role the project will play in reducing electricity costs while enhancing energy security.
“This deal is a game changer. Not just for Guyana and the United States. But for the people, businesses and shared aspirations that united our two nations.
“Together we are making bold steps to strengthen energy security, enhance environmental sustainability and unlock economic opportunity,” she said.
Through the financing, she noted that the US is helping to sustain an estimated 1,500 American jobs across 11 states and territories while empowering more than a dozen US companies to contribute their expertise to Guyana’s energy future.
She also called on Guyanese businesses to explore more opportunities with EXIM.
The Gas-to-Energy project aims to harness natural gas from offshore oil operations, channeling it through a state-of-the-art pipeline to an onshore processing facility.
This facility will convert the gas into reliable electricity, significantly reducing the cost of energy for households and businesses. Additionally, the project is expected to curtail Guyana’s reliance on imported fuel, reduce greenhouse gas emissions, and provide a platform for economic growth and industrial development.
According to Dr Singh, the project is a direct reflection of the government’s efforts to diversify the economy and to build a competitive non-oil economy.
“This represents a good example of what can be achieved and we want to see much more business with EXIM. We want to see big, medium and small-size projects. We look forward to doing much more with EXIM on every size point along the spectrum.
“Guyana is open for business. This is an incredibly exciting time in our economic history. We want to see more American companies investing in Guyana, doing business with Guyana and in Guyana and EXIM have an important role in this,” Dr Singh said.
Meanwhile, according to Prime Minister, Brigadier (ret’d) Mark Phillips, the signing is a declaration of the trust in Guyana’s potential and a commitment to sharing the country’s future.
“The US$526 in financing provided by EXIM bank will breathe life into Guyana’s gas-to-energy project. This will allow us to double Guyana’s installed electric capacity, modernised our energy infrastructure and position us to meet the growing demands of an increasingly dynamic economy,” Brigadier (ret’d) Phillips said.
In fact, he pointed out that the project will be the backbone of a stronger economy that is prepared to compete in the global economy.
“The financing from this transaction paves the way for constructing of a state-of-the-art natural gas separation plant, a 300 megawatt combined gas turbine power plant and supplying infrastructure for the gas supply pipeline,” the Prime Minister said.
The gas-to-energy project will cut over 460,000 tonnes of carbon dioxide emissions annually, which is equivalent which is equivalent to consuming more than 1 million barrels of oil.
