Budget 2024: Govt earmarks $80B to advance Gas-to-Energy project

…several major projects financed for cleaner, reliable electricity

Major projects will be financed with the $95.7 billion set aside for the energy sector in 2024, all with the intention of reducing energy costs while adequately meeting the growing electricity needs.
Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh told the National Assembly as he delivered his presentation on Monday evening, that works will continue on the flagship 300-megawatt Gas-to-Energy project.
A whopping $80 billion is budgeted to advance this project and its associated infrastructure, including transmission and distribution upgrades to offtake the power.
Thus far, the marine offloading facility was completed, and 26 kilometres (km) of onshore pipelines have been installed. Once completed, the project will allow Guyanese to benefit from 50 per cent reduced electricity costs.
The scope of Guyana’s gas-to-energy project consists of the construction of 225 kilometres of pipeline from the Liza field in the Stabroek Block offshore Guyana, where Exxon and its partners are currently producing oil.
It features approximately 200 kilometres of a subsea pipeline offshore that will run from Liza Destiny and Liza Unity floating production, storage and offloading (FPSO) vessels in the Stabroek Block to the shore. Upon landing on the West Coast Demerara shore, the pipeline would continue for approximately 25 kilometres to the NGL plant at Wales, West Bank Demerara.
In last year’s national budget, the project received a $43.3 billion allocation, in addition to the $24.6 billion injected into the start-up of the transformational project, for construction of an integrated Natural Gas Liquid (NGL) Plant and the 300-megawatt (MW) Combined Cycle Power Plant at Wales, WBD.
Solar Power
For this year, work will commence on a 10-megawatt solar farm in Berbice, an eight-megawatt solar farm in Essequibo, and a 0.6-megawatt solar farm in Leguan. Government will be spending $4.8 billion to finance these projects.
Solar power generation increased with the commissioning of a 1.5 MW solar farm in Bartica in 2023 while works have advanced on the 0.65-megawatt solar farm in Mahdia. The latter will be completed within the first quarter of this year.
Solar photovoltaic (PV) mini-grids were also installed in 21 communities such as Baramita, Capoey, Kwebana, Orealla, and Siparuta in 2023. These mini grid systems now provide renewable electricity to 285 public and community buildings.
In 2024, over $350 million has been budgeted for new mini grid systems in several areas including Awarewaunau, Katoka, Maruranau, Nappi, and Yupukari.
At the household level in the off-grid hinterland and riverain communities, 26,398 solar panels were delivered, bringing electricity to many of these homes for the very first time. In 2024, a further 3,602 solar panels will be distributed.

Hydropower
For the longer term, sustainable power from the 165 MW Amaila Falls Hydropower Project (AFHP) will also augment Guyana’s energy mix. A revised request for proposals was launched in 2023 for which 22 firms responded. Four of these submitted pre-qualification documentation – which are currently being evaluated.
Meanwhile, work on the mini-hydropower facilities in Kumu and Moco-Moco were substantially advanced. This year, $1.3 billion is budgeted to complete these facilities.
To improve reliability by reducing the voltage drop and network losses, as well as provide access of electricity to over 475 new households, $180 million is also budgeted to upgrade the primary distribution networks at Ituni, Kumaka and Kwakwani.
To prepare the offtake capacity for increased generation from multiple sources, the Guyana Powe and Light would have replaced 327 inefficient transformers, installed 77 kilometers of new distribution feeders, and commenced works on a new 69 kilovolt (kV) transmission line from Kingston to Sophia.
This year, works will also be completed on the upgrading of substations at Columbia, Good Hope, No.53 Village, and Sophia.
The Finance Minister told the National Assembly that the PPP/C administration’s objectives for this sector, through these projects, are to meet short-term energy needs; invest in doubling generating capacity for the medium term; advance the transition towards cleaner and more renewable energy; rebuild the transmission and distribution network to offtake the projected increases in generating capacity; invest in mini-grid systems for remote communities; and deploy household level solutions for the less densely populated communities in the hinterland.
“Once these projects are all completed, we will be generating and delivering adequate electricity to meet our needs, and we will be able to reduce the cost of electricity to a half of current levels,” the finance minister disclosed to the House.
This year’s sectoral allocation surpasses the $59.3 billion which was expended in energy infrastructure for 2023.
It supports the additional 28.9 MW of emergency power procured last year at a cost of $5.9 billion, which is being installed at the Columbia substation to add to the overall baseload generating capacity. This facility will be fully operational by February 2024. (G12)