Gas-to-Energy Project: Guyana positioning itself at forefront of energy transition – US Ambassador

– assures EXIM Bank close to finalising loan

United States Ambassador, Nicole Theriot hailed the Guyana Government’s commitment to sustainable development, stating that the country is positioning itself at the fore of energy transition with its model Gas-to-Energy (GtE) Project.
Delivering remarks at the American Chamber of Commerce Guyana (AmCham Guyana) Energy Mixer held recently in Georgetown, Ambassador Theriot noted that GtE initiative is a shining example of how Guyana is taking control of its energy future and positioning itself as a leader in sustainable growth.

“The Gas-to-Energy Project represents a significant commitment to environmental sustainability and for people who ‘gas and environmental sustainability’ …they don’t understand that as the world moves towards cleaner energy solutions, Guyana really is positioning itself at the forefront of this transition,” she stated.
Located at Wales on the West Bank of Demerara (WBD), the Gas-to-Energy project consists of a Natural Gas Liquids (NGL) facility and a 300-megawatt combined cycle power plant utilizing the rich natural gas that will be piped from the Stabroek Block offshore Guyana ashore. This highly anticipated project will not only see Guyana transitioning to a cleaner source of energy but will slash electricity prices by half when it comes onstream in the latter half of 2025 thus spurring commercial activities that would further bolster the country’s economic growth.
According to the US diplomat, natural gas is the best option for Guyana as it sustainably balances this unprecedent economic development.
“Natural Gas, which burns much cleaner than other fossil fuels, is a responsible choice for powering this country while simultaneously reducing carbon emissions by 30 to 50%. It’s a bridge to a future where renewable energy can play an even greater role… The United States fully supports Guyana’s commitment to sustainability and we commend the government for its vision of balancing growth with environmental responsibility,” the Ambassador stated.
Moreover, she added that Guyana is not only securing its energy future with this GtE but also the region’s.
Already, President Dr Irfaan Ali is working with his neighbouring and regional counterparts in establishing an energy corridor that could see Guyana supply other countries with power generated from its gas resources.
“This project strengthens Guyana’s and the region’s energy security. We didn’t even talk about these two words before the Russia-Ukraine situation but energy security is now first and foremost on so many people’s minds. It’s a crucial aspect of national security and national stability, and Guyana by tapping into its own natural gas resources, is making a strategic move to reduce reliance on costly energy imports,” Ambassador Theriot posited.
On this note, the US diplomat said her country is proud to partner with Guyana on the GtE project. The integrated project (NGL facility and power plant) is being built by a US-based consortium – Lindsayca CH4 Guyana Inc. (LNDCH4), which was awarded the US$759 million contract in November 2022. Additionally, US-based oil giant, ExxonMobil, which operates the oil-rich Stabroek Block, is responsible for laying the pipelines that will bring the rich gas from the Liza fields onshore at Wales.
Apart from the private sector involvement, the US Government is also playing a major role by offering financing for the project.
Back in April 2023, Guyana approached the US EXIM Bank for a US$761 million loan to finance the GtE Project. Earlier this month, Vice President Dr Bharrat Jagdeo disclosed that the Bank is preparing to submit a report to its Board at a meeting in October. This is after the technical and environmental due diligence work was done by the US EXIM Bank, which had sent experts to Guyana for these assessments.
Ambassador Theriot has assured that the loan will be approved soon.
“We are literally this close to finalising the EXIM loan that underpins the [Gas-to-Energy] project. The United States is absolutely committed to our partnership with Guyana to ensure these benefits reach every corner of the country, securing a brighter future for all and I’m really looking forward to witnessing for myself the extremely positive impact that this project will have on this great nation,” the US diplomat said.
But even as Guyana awaits the approval of this loan, the Government has already spent some US$400 million on the GtE project to date and could potentially fund the entire initiative if the request from the US EXIM Bank is not approved.
It was explained that the aim was to borrow approximately US$650 million from the US Bank to fund the GtE initiative, while the Guyana Government was expected to put up the other US$100 million, as advanced payment, to support the initiative.
However, VP Jagdeo had previously explained that the loan can fund retroactive expenditure hence government could use bridge financing to get the project going. Bridge financing is a short-term financing option to fund a project before the financing is expected. (G-8)