Georgetown Chamber confident gas-to-shore project is feasible

Last Updated on Wednesday, 14 February 2024, 16:46 by Denis Chabrol

Executive members of the Georgetown Chamber of Commerce and Industry briefing media about its support for the gas-to-energy project.

The Georgetown Chamber of Commerce and Industry (GCCI) on Wednesday said it relied on “publicly available” information about the gas-to-shore project to assess its feasibility and was confident that government would not have to subsidise its operations to keep its promise to cut electricity rates by 50 percent.

“We have not seen that that will be the case,” Senior Vice President, Mr. Richard Rambarran said when asked whether the chamber forecast that there would be a state subsidy. He noted that a state subsidy is often a sign of “inefficient operational management”, though there are other reasons such as employment and general benefits.

He expected electricity tariffs to lowered by more than 50 percent of current charges.  With electricity accounting for 30 to 40 percent of operational costs, the GCCI expects the gas-to-shore project to help businesses to become “cost competitive.”

City businessman, Clinton Urling remarked that operational costs after the project has been constructed would ultimately determine the final cost of electricity. “We have to look at the model in terms of how the project will be managed post the construction, what operational model will be used and that’s the important thing. And if there are operational inefficiencies by the operator of the gas-to-shore … that is the only reason where you will see cost might just blow out of hand and then it becomes prohibitive and that is worth examining,” he said.

Mr Urling said he trusted the feasibility studies seen by his colleagues, but he would like to examine their structure and methodology “ensure it was done in a correct manner.”

GCCI President, Kester Huston cheaper electricity tariffs would boost small and medium enterprises by reducing the cost of the production of goods and services, a perspective that prompted that organisation to write the United States Export Import Bank (EXIMBANK) to endorse the project.

Vice President of Guyana, Bharrat Jagdeo last week said he was confident that the EXIMBANK would approve Guyana’s application for a US$646 million loan during the first half of 2024.

The Chamber is looking forward to the gas to shore project-including the gas fired electricity power plant and the natural gas liquids plant- would form Guyana’s industrialisation launchpad, provide energy security and would reduce emissions.

But Mr Rambarran said the GCCI top brass has done its “own analysis” but has “not looked at other feasibility studies or other studies.” “We have done our analysis of it and we are standing on what we analysed about the project,” he said.

The GCCI official said the publicly available information was sufficient to for the chamber to formulate its “independent” analysis about its chamber. The engagements with the government included a recent session between Public Works Minister II Deodat Indar, accompanied by technical officials, and representatives of the Chamber.