GTE project set to become a reality despite delays – PPP GS

Earlier this year, a ruling had been issued between the Government of Guyana and Gas-to-Energy contractor, Lindsayca/CH4. The ruling confirmed that the dispute between the two parties must remain confidential, and both parties have 28 days to decide whether to take the matter to arbitration.

The government moved to arbitration because the contracted company, LNDC4, claims it is owed $50 million for commencing the project late.

“We’re making that decision [on] whether we go to full arbitration, which will be made shortly because it has to be made before the end of this month. [And] if we go on to arbitration, we’ll inform the public or if we decide to accept the report,” General Secretary of the People’s Progressive Party (PPP), Dr Bharrat Jagdeo stated on Thursday.

He informed reporters that the while the financial implications for the delay are not yet determined, the government is cautiously working to minimize these impacts, while ensuring its realization.

Given the economic boom occurring across multiple sectors, the government is investing in this massive facility to one, reduce electricity costs by 50 per cent that will in turn attract foreign investments, and two, to complement the demand for power.

“We’re planning full steam ahead for the project…It might be with a delay, but it is happening. It is happening [and] I am pleased about that,” he underscored.

Meanwhile, the government has shortlisted and started negotiations with the German company, Siemens Energy as the potential firm to operate and manage the power plant component of the GTE project in Wales, Region Three.

This approach, he highlighted aims to leverage Siemens’ expertise in this field, ensuring reliable performance and reducing operational challenges.

“We are now negotiating with them because we want them to, if we conclude a contract, they will run the power plant for 10 years or so. We don’t want have the headache of operating and maintaining the plant. You can get the company that produced the turbine to actually do it. And they’re a big global company,” GS Jagdeo explained.

Furthermore, the government is seeking potential firms to manage the natural gas liquid (NGL) facility, that will be responsible for the processing and distribution of by-products like cooking gas, fertiliser and other natural products.

This single largest investment comprises the construction of a pipeline, power plant, natural gas liquids facility and upgrades to the power distribution network.

US-based company CH4 Lindsayca is building out the integrated facility in Wales for US$759 million while Kalpataru Projects International Limited is establishing the transmission lines and substation needed to deliver electricity.

ExxonMobil Guyana has completed the construction of a pipeline that will allow natural gas to be transported from the offshore Stabroek Block’s Liza oilfield to the integrated gas processing facility in Wales.

Earlier this year, Guyana and the United States Export-Import (EXIM) Bank signed a US$527 million loan to further support the development of the GTE project.