Gas-to-Energy Project: Senior US State Dept official lauds Guyana as emerging power

…confirms initial approval of EXIM Bank’s US$500M loan

Describing Guyana as an emerging power, United States (US) Assistant Secretary of State for Western Hemisphere Affairs, Brian Nichols, has confirmed that initial approval was given for just over US$500 million loan for the Gas-to-Energy (GtE) Project back in November.

During a media briefing on Tuesday, Nichols spoke of his country’s growing relationship with Guyana. Specifically, he also confirmed the US Export Import (EXIM) bank’s initial approval of multi-million-dollar loan for the GtE Project last month.
“The strategic elevation of our relationship with Guyana, the fastest-growing economy in the world, provides further proof that these partnerships produce results. Our interagency partners at US Southern Command strengthened bilateral defence cooperation through medical missions, flood relief operations, joint training exercises, and military equipment transfers,” he said.
“We also partnered with US companies, which invested more than $15 billion in Guyana between 2021 and 2024. In November, the US Export-Import Bank gave initial approval for a $500 million loan guarantee to support a $2 billion U.S.-built Gas to Energy Project that represents the largest foreign investment in Guyana’s history,” the diplomat added.
According to the diplomat, the US has been able to elevate its relationship with emerging powers like Guyana. This, in turn, has helped the US Government to boost economic competitiveness, while tackling issues such as displacement and irregular migration.
“We’ve really focused on harnessing our diplomatic tools to build partnerships to deliver results that advance American core interests, and the core interests of our partners and allies around the hemisphere,” he said.
“This spirit has elevated our relationship with emerging powers like Guyana, enhanced cooperation to address historic levels of displacement, irregular migration, and boosted economic competitiveness throughout the Americas.”
Nichols’ comments came on the heels of Vice President Bharrat Jagdeo himself announcing since last month that the loan had been approved. At the time, Jagdeo had said that the Guyana Government had been waiting on the US finance institution to make the announcement first.
“The loan has been approved by the Board of EXIM Bank, and it has been sent to the Congress for 30 days’ notification, after which it will be returned to the Board of EXIM Bank for final approval. So, that is where we stand at this point in time,” he had indicated.
However, Jagdeo’s comments had subsequently been challenged by opposition elements such as Alliance For Change (AFC) Member of Parliament David Patterson, who had claimed approval wasn’t given.
At the AFC press conference last Friday, a reporter asked Patterson whether he wished to retract this claim and offer an apology. However, Patterson remained steadfast, asserting that the party’s position-that the loan had not been approved-was unchanged.
Back in April 2023, it was announced that Guyana had applied for the loan from the US EXIM Bank to finance the US$761 million GtE Project, which includes construction of an Integrated Natural Gas Liquid (NGL) plant and a 300-megawatt (MW) combined cycle power plant at Wales, West Bank Demerara (WBD) utilising natural gas from the country’s offshore operations in the Stabroek Block.
The US EXIM Bank’s approval came on the heels of high-level due diligence done by the financial institution. The Guyana Government had stated that no fatal flaws were found during the technical and environmental assessments done by the bank.
Government had also set aside a whopping $80 billion in Budget 2024 to advance the GtE initiative and its associated infrastructure, including transmission and distribution upgrades to offtake the power.
And last month, another $25.3 billion was approved by the National Assembly to support the ongoing construction works which were started in December 2022 by the contractor – US-based consortium of Lindsayca CH4 Guyana Incorporated (LNDCH4), at the Wales site.
During consideration of the Financial Paper No. 4 of 2024 that included funds for the project, Prime Minister Brigadier (Ret’d) Mark Phillips had informed the Committee of Supply that G$99 billion has already been expended on the Wales project, with construction progressing smoothly.