Gas bottling, fertiliser plants key to reducing cost of living – PM Phillips

As part of a long-term strategy to tackle the rising cost of living in Guyana, Prime Minister (PM) Brigadier (Ret’d) Mark Phillips says that the proposed gas bottling and fertiliser plants at the Wales Industrial Zone on the West Bank of Demerara (WBD) will play a critical role in cost reduction for consumers. During an appearance on the recent episode of the ‘Starting Point’ podcast, which streamed on Sunday, the PM pointed to the highly anticipated Gas-to-Energy (GtE) Project at Wales which will not only bring cheap and reliable power but also slash the cost of electricity by half when it comes into operation by the end of this year. The GtE Project comprises a 300-megawatt (MW) combined cycle power plant and a Natural Gas Liquids (NGL) facility that will utilise the gas from ongoing oil operations in the Stabroek Block offshore Guyana. Already, some 250 kilometres (km) of 12-inch pipelines have been laid to bring the gas onshore. However, only 40 per cent of the pipeline’s capacity will be used by the GtE Project to gas up the power plant and NGL facility, bringing 50 million standard cubic feet per day (MMscfd) of dry gas. With the pipelines having the capacity to push as much as 120 MMscfd of gas, the Government is moving ahead with Phase Two of the GtE Project that will utilise the remaining 60 per cent capacity of the pipeline to bring additional gas onshore. The GtE Phase Two will see the construction of another 300-MW power plant and NGL facility at the Wales site, using only 20 MMscfd. With the remaining natural gas available, the Government is planning to set up two major industrial projects – a gas bottling plant and a fertiliser manufacturing plant at Wales. Consequently, the Government, through the Office of the Prime Minister (OPM), has invited Requests for Proposals (RFPs) for the Guyana Gas Bottling and Logistics Company (GGBLC) and the Guyana Ammonia and Urea Plant (GAUP) – both of which are still to open February 19 and March 5, respectively.

Reducing costs
According to PM Phillips, these investments will be central to bringing down costs in Guyana, especially food prices by lowering production costs for thousands of farmers nationwide thus creating a ripple effect across the food supply chain. “Once we could reach to the stage of manufacturing our own fertiliser, that will have a positive impact on agriculture, on our farmers… that has a trigger effect because if you cushion the effect in terms of the cost of production in the farming sector, it will also have an effect in terms of the food that goes on our table, the price that we pay for food,” he noted. Currently, the Guyana Government is subsidising the cost of fertiliser to the tune of some $2 billion as part of efforts to support the local agriculture sector. The PM pointed out that once Guyana starts producing its own fertiliser, it will not only reduce the cost but also bring in income.
“Having a fertiliser plant on board in a couple years down the line, it means that we will have enough fertiliser to satisfy our farmers at a far cheaper cost than they’re paying now, and of course, whatever excess is also available [will go] for export to the wider Caribbean region,” he noted. Similarly, PM Phillips stated that Guyana could also be exporting excess bottled gas after meeting local demands.
“When that [gas bottling plant] comes on stream, it means that we’ll be producing and bottling gas, and distributing to the people of Guyana at a far lower cost than they’re paying right now. It also means that we could market and export the gas to the wider Caribbean based on the production capacity that we envisage. We’ll satisfy the needs in Guyana and have gas exported to wider Caribbean. So, Guyana will benefit, the region will benefit from it too,” he asserted.

Year-end completion of Phase One
But while these two initiatives are set to come onstream when the Phase Two of the GtE Project is operationalised by 2030, Phase One of the much-anticipated project is on track for completion this year-end. PM Phillips was given this assurance by the contractor during a site visit on January 9. The GTE Project falls under the OPM. During the visit, the PM was told that all four gas turbines and six main transformers have been installed. Additionally, substantial progress has also been recorded in steam generation works with four Heat Recovery Steam Generators (HRSGs) completed and scheduled to be in place by the end of this first quarter. Moreover, approximately 90 per cent of the project’s equipment has already been manufactured and is currently in storage. In fact, over the weekend, several control rooms for were successfully transported to the project site at Wales, marking another major milestone in this critical national initiative. However, as Guyana continues to undergo unprecedented development across all sectors, the demand for electricity continues to grow rapidly. To meet this energy demand – pegged at over 220-MW in 2025, the Guyana Government as implemented a series of short-term measures including two power ships that are feeding over 90-MW into the national grid.