Gas-to-Energy Project: 140,000m piles driven, soil stabilisation completion among milestones in 2024 – contractor

– as steam turbines, oil tanks arrive at site

The contractor for the highly-anticipated Gas-to-Energy (GtE) Project, Lindsayca CH4 Guyana Inc. (LNDCH4-Guyana), has recorded a year of “milestones and progress” in 2024 including the completion of soil stabilisation works as well as the driving of some 140,000 metres of piles.
The Joint Venture formed by United States (US)-based companies, Lindsayca and CH4, was awarded the US$759 million contract in November 2022 to build the 300-megawatt (MW) Combined Cycle Power Plant and a Natural Gas Liquids (NGL) facility at Wales, West Bank Demerara (WBD) – key components of the GtE Project.
In a progress report recently posted to its social media page, LNDCH4-Guyana said, “This year, we’ve made significant strides towards Guyana’s energy security.”
Among the key accomplishments of the GtE Project is the completion of the soil stabilisation works. In September, GtE Project Lead, Winston Brassington, revealed during a presentation at the American Chamber of Commerce of Guyana (AmCham Guyana) Energy Mixer that over 1.65 million cubic metres (m³) of sand, more than 160,000 m³ of loam, and 25,000 m³ of crusher run were purchased for the soil stabilisation exercise at the 100-acre Wales project site.

In addition, the contractor disclosed that 140,000 metres of piles were driven at the site. Over 7,000 steel piles, some at 37.5 metres, are slated to be driven for this project. These range from compression piles to tension piles. At the beginning of this month, LNDCH4 had reported that some 3,715 of these piles have been installed thus far.

Turbines
Meanwhile, another major milestone this year was the arrival of two state-of-the-art gas turbines from Sweden in October. These turbines, capable of generating 300 MW of electricity, are set to revolutionise Guyana’s energy landscape by providing cleaner power for decades to come.
Then only last week, two state-of-the-art steam turbines and two oil tanks arrived in the country on December 21. These critical components of the GtE Project have been safely transported and will be stored at the warehouse, where they will remain until they are ready to be installed.
Back in July, LNDCH4-Guyana successfully offloaded and transported seven essential transformers – devices that will transfer electrical energy between circuits through electromagnetic induction, adjusting voltage levels to ensure efficient power distribution and safe delivery over long distances. These transformers will step up the voltage for transmission and help minimise energy loss, ensuring a stable power supply to homes and businesses in Guyana.
Other achievements of the GtE Project in 2024 include the completion of manufacturing for the Flare, the Heat Recovery System, the NGL Facility, and the NGL Storage Tanks.
According to LNDCH4, these workers were completed during 900,000-plus accident-free hours.

“We are proud to be part of securing Guyana’s energy future! Through dedication and hard work, we are now closer to powering the nation with reliable and sustainable energy. We’re excited to continue our progress in the new year and contribute to a brighter future for Guyana,” the GtE contractor stated.

Dispute
The GtE Project consists of five key components: laying the pipeline to bring the gas onshore – which has been completed by ExxonMobil, construction of the power plant and NGL facility, installing transmission lines, building a new control centre and upgrading the aged power distribution system.
Initially, the project was scheduled to be completed by the 2024 year-end but following setbacks in handing over some components including site preparation works, LNDCH4 was given an extension to next year to deliver the power plant. However, the contractor and the Guyana Government are currently in a dispute over the deadline and associated costs but officials have assured that this issue is not affecting the project as works continue on the ground.
Only last week, Vice President Dr Bharrat Jagdeo disclosed that written and oral submissions have already been made by the parties to the three-member Dispute Avoidance/Adjudication Board (DAAB) that was set up to resolve this issue. He said that supplementary submissions are due in mid-January and thereafter, the DAAB is likely to deliver a ruling by the end of the month and if that decision is not accepted by either or both parties then the matter could go to full arbitration.
The GtE contractor is making financial claims to the tune of US$50 million and wants more than the three-month extension that the Government has granted.
But VP Jagdeo argued at a press conference in September, “We believe that the delay in handing over the site… will justify just a three-month extension and that’s what we’re arguing for in the arbitration. Therefore, power should be supplied to the grid from that project by April 2025. If they cannot do that, our argument in the arbitration is that… there will be liquidated damages.”
Meanwhile, even as this first dispute is being mediated, LNDCH4 has made another claim.
The Vice President confirmed last week that there have been some additional claims by the consortium, “particularly as they relate to the soil condition and those would have to go through the technical process to see whether [the new claims] are justified or not.” (G-8)