Commenting on the separation of Gas-to-energy (GTE) contractors Lindsayca and CH4, General Secretary Dr Bharrat Jagdeo said that the technical consultant has assured the Government of Guyana that this move will ensure the project is delivered within the stipulated timeline.
Dr Jagdeo made this point during his weekly press conference at Freedom House on Thursday.
“We’re told that this is to facilitate the completion of the project by deadline…[this] would allow them to accelerate the work,” he explained.
The general secretary mentioned that the reason for the split is a result of the internal disputes between the two companies. Dr Jagdeo said the government’s primary focus is to ensure the project is completed and the attributed benefits are derived.
“It seems as though the internal wrangling between the companies is affecting the pace of implementation of the project. So, I’m told it is a positive thing that it is happening, but the technical people have to look at that,” the general secretary posited.
The general secretary, who is also the vice president, stated that this change in structure will not affect the already-guaranteed loan from the US Export-Import Bank. The loan amounts to US$527 million.
The US-based companies have the responsibility of completing the integrated facility that will process the gas and convert it into power. Indian company Kalpataru Projects International Limited is tasked with establishing transmission lines and substations needed to deliver the electricity to the national grid. This work is currently ongoing.
Before this, ExxonMobil completed its portion of the project by laying the pipeline that will allow the gas to be transported from the offshore Stabroek Block to the power plant, which will be located in the Wales Development Zone, West Bank Demerara.
The GTE project will double the country’s generating capacity whilst simultaneously reducing the cost of electricity by 50 per cent. The cost reduction is expected to significantly increase manufacturing activity, pushing Guyana closer to a self-sufficient nation.
Additionally, the project will reduce the cost of cooking gas since part of the project entails a Natural Gas Liquids (NGL) facility, which will be commercialised for maximum benefits to be passed onto the citizens.
The project is expected to be delivered by the second quarter of 2026.
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