Company building GtE among firms in running for 2nd power plant

…American, German companies also bid for contract

CH4- the company that, in partnership with Lindsayca is currently building the first 300-MegaWatt (MW) power plant under the Gas-to-Energy (GtE) Project, is among the firms in the running to build the second power plant.
Back in September 2024, the Government through the Office of the Prime Minister had invited companies to respond to a Request for Proposals (RFP) to “design, finance, and operate” Phase II of the GtE Project based on a 20-to-25-year Power Purchase Agreement (PPA).
Phase Two of the GtE Project is expected to see a second power plant and Natural Gas Liquids (NGL) facility being built at Wales, West Bank Demerara (WBD). And last week, the bids for this second plant were revealed by the National Procurement and Tender Administration Board (NPTAB).
In addition to Puerto Rican based company CH4, German company Siemens Energy has also thrown its hat into the ring. Most notably, Siemens is responsible for the gas turbines being used in the combined cycle power plant for the GtE Project. Lastly, United States (US) based company Ethos Energy was the third company to bid for the project.
CH4 had joined forces with US-based company Lindsayca to form Lindsayca CH4 Guyana Inc. (LNDCH4), which was awarded a US$759 million contract in November 2022 to build the power plant and NGL facility for the GtE Project.

Now however, the consortium is engaged in a disagreement with the Government over the timelines of the project and associated costs. The consortium made financial claims to the tune of US$50 million over delays from other components of the project which were overseen by Exxon, saying that the late handover would affect its delivery according to contractual timelines.
In light of the delays, the Government has extended the deadline, but the contractor was not satisfied, and wanted more time. Moreover, the People’s Progressive Party/Civic (PPP/C) Government has rejected the claim.
This has resulted in the contractor moving to a dispute resolution mechanism that would see a three-member board set up to mediate between the two parties. Government has previously said that this dispute is not affecting construction works, which continues uninterrupted.
Second phase
The second phase of this transformative project includes the design, construction, and operation of a 250 MW combined-cycle power plant, to deliver 2,100 Gigawatt/hours (GWh) of electricity per annum, and sold to the Guyana Power and Light (GPL) Inc.
The project also caters for the design, construction and operation of another NGL facility to produce at approximately 6,000 barrels per day of NGL products such as propane, butane, and C5+gasolene.
Additionally, Phase II also includes the transfer, at no cost, of excess “lean gas” estimated at 30 Million Standard Cubic Feet per Day (MMSCFD), for utilisation in downstream industries, e.g. fertiliser production, to be located at Wales.

Based on the RPF document, the Phase II projects will be located on no more than 100 acres of land, immediately adjacent to the existing 300 MW Integrated facility at Wales and will be 100 per cent owned and financed by the private sector – similar to or exceeding the project finance structure of Phase I of the GtE Project.
It was noted that only firms (consortia) adjudged to be experienced in Engineering Procurement and Construction (EPC) and Financing of comparable facilities, will be evaluated. The Government also said it intends to appoint an independent supervision firm to ensure the project is built per approved contract quality and specifications.
This move to establish a second power plant at Wales is part of the PPP/C Government’s efforts to transition to clean energy, slash the costs of electricity and provide reliable energy sources for the country’s booming economy.
In the Stabroek Block, some 17 trillion cubic feet of gas have already been found, with the Pluma and Haimara wells being proven gas fields. The Guyana Government is seeking to develop this gas.
Back in 2019 and 2023, ExxonMobil drilled for gas at the Haimara-1 and 2 wells, and emerged with varying degrees of success. It was recently revealed that the US oil giant’s drill programme for Guyana for this year and beyond includes plans to further appraise the Haimara 3 and 4 well sites to gauge the commercial potential for gas in the Haimara gas field. (G3)