Guyana gov’t, Indian company ink major EPC contract for natural gas liquids, natural gas-fired power plant

Last Updated on Wednesday, 19 July 2023, 18:23 by Denis Chabrol

The Guyana government and one of India’s leading engineering companies on Wednesday inked a US$155.99 million contract to provide to provide Engineering Procurement and Construction (EPC) services for  transmission lines and substations for the Natural Gas Liquids plant and the 300 megawatt natural gas power plant at Wales, West Bank Demerara, the Indian High Commission said.

The deal was inked by Permanent Secretary of the Prime Minister’s Office, Derrick Cummings; Chairman of Guyana Power and Lights Inc; Mr. Maurice Gajadhar and and Mr. Mainak Majumdar General Manager (International Projects), Kalpataru Projects International Limited (KPIL), according to a statement by the Indian High Commission.

Despite this significant development in the  construction of the plants, the media were not invited.

KPIL is one of the largest specialized EPC companies from India, with an annual turnover of around USD 2 billion, is publicly traded, and engaged in Power Transmission & Distribution, Buildings & Factories, Water Supply & Irrigation, Railways, Oil & Gas Pipelines, Urban Mobility (Flyovers & Metro Rail), Highways and Airports.

Witnessing the signing were Prime Minister Mark Philips,  High Commissioner of India Dr. K.J. Srinivasa, Minister within the Ministry of Public Works Deodat Indar, Head of Guyana Gas to Energy Task Force Mr Winston Brassington and officials of the Task Force, along with other senior Government officials of the Prime Minister’s office & Ministry of Natural Resources, and executives of KPIL.

Mr Philips and Mr Indar, emphasized the transformational nature and importance of the mega Gas to Energy Project and how it was part of a comprehensive plan of the Government of Guyana to realize the development potential of Guyana. The Guyanese dignitaries also alluded to the critical association of two Indian companies in the project – KPIL as the EPC Contractor for Transmission Lines and Substations and Engineers India Limited as the Project Management Consultant to the NGL Plant plus 300 MW CCGT Power Plant.

High Commissioner Dr. Srinivasa in his remarks underlined the growing and diversifying India-Guyana relationship and the entry of premier Indian companies both from the Indian public sector like RITES (currently supervising the Ogle Road project), GRSE (which manufactured the ferry for Region 1), REIL (for the 30,000 solar energy systems) & Engineers India Limited, along with private sector companies like Ashoka Buildcon, and now KPIL being the newest entrant to Guyana.

High Commissioner expressed hope that the Indian company will be able to execute the project well within the timeframe and guidelines prescribed and specified by the Government of Guyana. High Commissioner also dwelt on the multifaceted developmental cooperation between India and Guyana including in infrastructure, education, healthcare, energy, oil and gas and capacity building.

KPIL is currently executing 250 projects in over 30 countries and has a global footprint in over 70 countries.  KPIL has so far globally executed orders worth over US$ 14 billion & has maintained a leadership position in all its major businesses backed by strong organisational capabilities, superior technical know-how, and adherence to best-in-class sustainability standards.

The Company’s presence in Europe and South America has been further strengthened by the acquisitions of Linjemontage, Sweden and Fasttel, Brazil. Linjemontage offers power supply solutions and services for electricity networks up to 400 kV. It operates in three core business areas of substations, transmission and local networks and electricity network services. Fasttel has presence in more than 20 states in Brazil, with primary focus on EPC of substations, transmission lines and power distribution services