Gas-to-Energy project: Govt negotiating contract with German firm to operate 300MW power plant

– bid out for NGL facility operator

The Guyana Government is currently negotiating contract terms with German company Siemens Energy SAS, which has been selected to operate the 300-megawatt (MW) combined cycle power plant – a key part of the highly-anticipated Gas-to-Energy (GtE) project.

Located at Wales, West Bank Demerara, the GtE project comprises the power plant and a Natural Gas Liquids (NGL) facility – both utilising the rich natural gas that will be piped from the Liza Field in the Stabroek Block offshore Guyana.
In January 2025, the Office of the Prime Minister had issued a Request for Proposal (RFP), inviting qualified firms to provide their proposals for the Operations and Maintenance (O&M) of the GtE Phase 1 NGL Plant.
The RFP invitation, which is still out, states that the proposal is not for the operations and maintenance of the power plant and auxiliary services, which will be managed overall by Siemens Energy.
During a presentation at the ongoing Guyana Energy Conference and Supply Chain Expo on Wednesday, GtE Project Lead Winston Brassington confirmed that Siemens Energy was selected to run the 300mw power plant.
“It was the most technically compliant proposal, and now the contract is being negotiated. And we expect that to be concluded in the next few months,” he stated.
As it relates to the RFP advertisement for operation and management of the NGL facility, the deadline for submission is March 13, 2025.
“The NGL facility is a relatively smaller facility to the whole plant. But we’re gonna get a sub-contractor to be the O&M operator for this. So, between the two, those are the parties that will operate the power plant and the NGL facility, and both of those parties are expected to be in place by the middle of the year; so, there is enough of a transition between construction and operations,” Brassington told delegates at the Conference.
Based on the RFP advertisement for the NGL facility, potential operators are expected to show O&M experience of at least three plants similar to the NGL facility under construction in Guyana; strong HSE (Health, Safety and Environment) culture, with demonstrative capabilities in workforce training, particularly focusing on local content, use of advanced technology for efficient operations and safety monitoring, and financial capacity to manage large scale operations.
According to the invite, only firms or consortia experienced in operations and maintenance of comparable facilities will be ranked, and these must be listed with the relevant criteria, as mentioned above, for the last fifteen years.
The highly anticipated GtE Project was initially slated to come on stream by April this year. However, the Guyana Government has been engaged in a dispute with the project contractor, Lindsayca CH4 Guyana Inc. (LNDCH4), which has made financial claims and a deadline extension over delays caused by other aspects of the project.
During Wednesday’s presentation, Brassington stated, “On the integrated facility (power plant and NGL facility), contractually, this slated to be delivered in the second half of this year, but we’ve seen a schedule that suggest it’s going to take longer. So, contractually, this year, realistically, we’re looking at some delays, and some of these matters are in dispute.”
A three-member Dispute Avoidance and Adjudication Board (DAAB) was set up to settle this matter between the Government and the GtE contractor, which was awarded US$759 million contract in November 2022 to build the Power Plant and NGL facility at Wales.

After submissions and hearings, it was reported earlier this month that the DAAB had ruled, and now the Government has 28 days to decide on whether to go forward with full arbitration.
The Office of the President said in a statement that the DAAB issued its ruling on January 31, 2025. While it did not say what the ruling was, citing confidentiality, it was explained that both parties now have 28 days to decide on their next course of action, namely whether they wished to refer any of the decisions to arbitration.
“It would be recalled that certain aspects of the project were executed on the GoG’s behalf by ExxonMobil. The GoG will therefore, in the next few weeks, in consultation with its partners, including ExxonMobil as well as relevant legal and technical advisors, determine the best course forward for GoG,” the Office of the President said.
“The GoG’s priority continues to be to ensure that the project is completed in the shortest possible time and in keeping with contractual specifications, with a view to bringing the power plant and the NGL [Natural Gas Liquids] plant into operation and delivering the associated benefits to the Guyanese people as soon as possible.”
The Office of the President reminded that when completed, the project’s benefits would include a doubling of the country’s electricity generating capacity to keep pace with the growing demand, and the slashing of electricity prices paid by consumers by 50 per cent.
“This will, in turn, catalyse rapid expansion in industrial activity, and immediately improve the competitiveness of the manufacturing sector and all other productive sectors that are energy-intensive, bringing vast employment and entrepreneurial opportunities for Guyanese nationals.
“Additionally, the completion of the project will facilitate other benefits, such as a reduction in the cost of LPG cooking gas to households and businesses, and the realisation of domestic self-sufficiency with significant surplus for the export market,” the Government further explained.
As such, the Office of the President explained that the project would not only generate significant foreign currency savings for Guyana as a result of reduced imports, but also generate additional export revenue. This will in turn bring with it macroeconomic benefits like a stronger balance-of-payment position and help grow the economy.
The People’s Progressive Party/Civic (PPP/C) Administration’s flagship GtE initiative is divided into five components: the pipeline from offshore production activities to Wales, the building of the power plant and NGL facilities, the transmission main to move power generated at the power plant, a new control centre at Eccles, East Bank Demerara (EBD), and upgrading the national power grid.
According to Brassington, works on these other components are progressing.