GOG moves forward with arbitration in dispute with Lindsayca/CH4

The Government of Guyana (GOG) has decided to proceed with arbitration following ongoing disputes related to the Engineering, Procurement, and Construction (EPC) contract with Lindsayca/CH4 (LNDCH4). This decision comes after the Dispute Avoidance and Adjudication Board (DAAB) issued formal rulings on January 31. Both parties were given a 28-day window to determine whether to pursue arbitration, which expired on February 27.

Within this period, both GOG and LNDCH4 filed Notices of Dissatisfaction, signalling their intention to initiate arbitration proceedings. The arbitration will be managed by the International Chamber of Commerce (ICC), with the hearings scheduled to take place in Washington, D.C.

Under the Dispute Avoidance and Adjudication Board’s (DAAB) procedures, all decisions made in this case remain confidential. Despite these ongoing disputes, both GOG and LNDCH4 acknowledge the strategic significance of the project for the Guyanese economy.

LNDCH4 has resumed onsite activities, including piling work, and preparations for foundation work are on the horizon. In addition, construction of a cement batching plant is progressing, with steel for foundation work already delivered to the site. A workers’ camp is also being set up, with over 170 personnel currently mobilised.

Once completed, the project is expected to drastically reduce electricity generation costs, allowing Guyana Power and Light Inc. (GPL) to lower tariffs by up to 50%. This tariff reduction is poised to have a substantial impact on the Guyanese economy, driving more competitive production costs and fostering wider economic growth.

ExxonMobil Guyana Limited (EMGL) has already completed the construction of the gas pipeline, and the necessary transmission lines and substations required for the integration of the project are significantly advanced, with completion expected by mid-year.

Despite the ongoing arbitration, both parties remain dedicated to ensuring the timely progress of the power plant and the natural gas liquids (NGL) plant. The relocation of gas and steam turbines, which are already in Guyana, to the Wales site is also set to move forward.

The GOG issued this update on March 5, 2025.