GY$43.3 billion allocated for natural gas power plant, natural gas liquids plant, transmission lines

Last Updated on Monday, 30 January 2023, 18:45 by Denis Chabrol

The Guyana government intends to spend GY$43.3 billion on the construction of the gas to energy power plant, natural gas liquids plant and the transmission lines, Prime Minister Mark Phillips said Monday.

During consideration of the estimates of the 2023 National Budget, Mr Phillips, in response to APNU+AFC parliamentarian Ganesh Mahipaul’s request for a breakdown, said GY$33.672 billion would be for the Engineering, Procurement and Construction of the natural gas liquids plant, the natural gas-fired 300 megawatt electricity generation plant; GY$968 million for the project management consultancy, and GY$8.6 billion for transmission lines.

The American-owned joint venture LINDSAYCA/CH4- Guyana has been awarded the contract to build the US$759 million plants.

Replying to APNU+AFC legislator David Patterson about who would be upgrading the electricity transmission system, the Prime Minister said bids for that aspect of the project are expected to close by February month-end. But Mr Patterson wanted to know whether the Guyana Power and Light (GPL) would be playing any part, but Mr Phillips said, “as far as I am concerned that is adequate answer at this point in time.”

The Prime Minister sought to assure that the transaction would be done transparently and that all Guyanese, including opposition parliamentarians, would be kept abreast. “I wish to assure the Honourable Member that we are committed to transparency. As the information becomes available, we will communicate to the general Guyanese public and certainly to the members on the opposite side of the House,” he said.

Government hopes that the generation and natural gas liquids plants, which would be constructed at Wales, West Bank Demerara, would be completed by December, 2024.  Guyanese have been promised that the cost of electricity would reduce to 15 US cents per kilowatt hour as the natural gas-fired plant would produce power at 4 US cents to 5 US cents per kilowatt hour. Guyanese are currently paying 30 US cents to 25 US cents