US-Puerto Rican contractors file more claims for gas-to-energy plant site works

Last Updated on Friday, 10 January 2025, 22:59 by Writer

The joint venture, United States-based Lindsayca and CH4 Systems out of Puerto Rico, have filed an additional almost US$50 million in claims for soil stabilisation at the Wales, West Bank Demerara site for the natural gas power plant and natural gas liquids plant, a senior official said Friday.

Speaking briefly with reporters, LINDCH4 General Manager, Humberto López said there were now two claims totalling just under US$100 million, one of which would be decided on next month by a dispute resolution mechanism. “There is two of them that was placed at the same time,” he said.

Mr Lopez explained that they are “related to the stability of the work and the access to the site and the claims are for “extra job that we had to do to prepare the land.”

The LINDCH4 official spoke with reporters during a tour by top government officials and the Chairman of the Export-Import Bank of the United States, Reta Jo Lewis after she signed a US$526 million loan agreement with Finance Minister Dr Ashni Singh.

During briefing delivered to, among others, Prime Minister Mark Phillips, Natural Resources Minister Vickram Bharrat, the Finance Minister, representatives of ExxonMobil Guyana, United States Ambassador to Guyana, Nicole Theriot and Deputy Chief of the Guyana Embassy in the United States, Ambassador Zulfikar Ally. The LINDCH4 General Manager said the 100-acre site was built up 1.2 metres above sea level with 1.8 million cubic metres of sand.

He said the area was allowed to settle for about three months beforehand. Foundation steel piles were also being driven 36 metres deep before the generators and other equipment are installed. Pylons were also being erected to run high voltage power lines to sub-stations and a control centre for distribution on an upgraded transmission and distribution network.

The EXIM Bank Chairman called the natural gas projects “transformative” and a “game-changer” for people and businesses. “Together, we’re taking bold steps to strengthen energy security, enhance environmental sustainability and unlock economic opportunity,” she said. She touted the project as one that would provide cleaner, more reliable and more affordable energy for families and businesses.

Ms Lewis expressed satisfaction that the plants were being constructed and installed by American companies, saying US equipment and technology offer reliable, durable and quality solutions to Guyana.

Turning to US interests, she said the EXIM Bank loan supports over 1.500 American jobs across 11 states and territories while empowering more than 12 US companies to contribute their expertise to Guyana’s energy future.

Finance Minister Singh reiterated that Guyanese would pay 50 percent less in charges for electricity that would be supplied by the Wales natural gas-fired generators and so “catalyse a quantum leap in the competitiveness and potential competitiveness” of the entire non-oil economy through diversification.

Prime Minister Phillips said the agreement with EXIM Bank was “proof that we are building a future beyond the extraction of resources” and symbolises the trust that Guyana has earned through its commitment to responsible governance. He said the project would cut more than 460,000 tonnes of carbon dioxide emissions or more than 1 million barrels of oil.

Gas would be transported from the two FPSO (floating production, storage and offloading) vessels that are operating at Liza 1 and Liza II.