Gas-to-shore project: Cabinet greenlights consortium building 300mw power plant at Wales – Pres Ali

…contract to be signed by month-end

The Guyana Government has approved the consortium of CH4 Guyana Inc/Lindsayca Inc. to construct the 300-megawatt power plant and natural gas liquids (NGL) plant at Wales, West Bank Demerara as part of the People’s Progressive Party/Civic Administration’s model Gas-to-Shore initiative.
This was announced on Thursday by President Dr Irfaan Ali in a live broadcast following a Cabinet meeting. “Cabinet (on Thursday) issued its no-objection to the ranking of CH4/Lindsayca as the number one-ranked group to build a 300MW Combined Cycle Power Plant and Natural Gas Liquids (NGL) Plant at Wales, West (Bank) Demerara under an Engineering Procurement Construction (EPC) Contract…,” he disclosed.
“Power China was ranked number two, and may be engaged if negotiations fail to conclude a contract with Lindsayca by the end of November,” the Head of State revealed.
Earlier this year, nine firms were publicly pre-qualified to bid on the EPC contract, and Request for Proposals (RFP) were issued to these bidders. By September, five bids, ranging between US$450 million and US$900 million, were submitted. CH4/Lindsayca was the highest bidder, with US$898.76 million, while Power China International Group had put in a US$703.65 million bid.
According to President Ali, those bids were evaluated for technical compliance and ranking by Stantec and Worley – two global engineering firms with expertise in the oil and gas sector.
“Based on the reports of these international firms, an Evaluation Team of three people, including a representative of Exxon, was appointed. The Evaluation Team performed the evaluation in accordance with the technical and economic criteria set out in the RFP. On the basis of the bids submitted and clarifications received, the Evaluation Team unanimously ranked CH4/Lindsayca as number one, and Power China as number two,” he explained.
The Head of State added that the evaluation took account of the expected date of delivery of the 300MW power plant, December 2024 – which both top-ranked companies have reaffirmed.
The EPC Contract will be supervised by a global supervision firm – Engineers India Limited.
Cabinet’s no-objection to the award of the contract to the consortium will now pave the way for negotiations to commence in preparation of the signing of the contract before the end of November.
Apart from the power plant and NGL plant, the scope of US$900 million Gas-to-Shore Project, which has a 25-year lifespan, also consists of the construction of 225 kilometres of pipeline from the Liza field in the Stabroek Block offshore Guyana, where ExxonMobil and its partners are currently producing oil.
Approximately 220 kilometres of subsea pipelines offshore will run from the Liza Destiny and Unity floating, production, storage and offloading (FPSO) vessels in the Stabroek Block to the shore. Upon landing on the West Coast Demerara shore, the pipeline will continue for approximately 25 kilometres to the NGL plant at Wales.
Exxon, with funding from cost oil, is expected to deliver the completed pipeline by the fourth quarter of next year, in order to allow for the commissioning and testing ahead of the power plant coming online by the end of 2024.
The pipeline would be 12 inches wide, and is expected to transport some 50 million standard cubic feet (mscfpd) of dry gas per day to the NGL plant, but has the capacity to push as much as 120 mscfpd. The route of the pipeline onshore would follow the same path as the fibreoptic cables, and would terminate at Hermitage, part of the Wales Development Zone (WDZ) where the Gas-to-Shore Project would be housed.
At present, Government is engaged in negotiations with landowners who will be affected by the project, with a view to offering them appropriate compensation in exchange for their properties.
While the Guyana Government would own the 300MW power plant and NGL plant, it would be recruiting an international firm to operate the project to international standards and best practices.

The PPP/C Administration is confident that this Gas-to-Energy project would significantly slash electricity costs in Guyana by at least half of what currently obtains. In fact, President Ali pointed out on Thursday that the project generation costs, taking account of payment for the pipeline, operations and maintenance (O&M), and capital cost recovery, would take energy costs to less than five US cents per kilowatt hour.
“Fellow Guyanese, this is a significant movement forward in Guyana, not only achieving energy security, but us achieving an important benchmark; that is: a reduction in our energy costs so that our manufacturing and industrial development and expansion can take place, and so that the ordinary families and the ordinary people can feel a substantial reduction in the cost of electricity in their pockets and in their household. Just for reference, a family at the end of this project that now pays GY$20,000 per month in light bill or electricity costs will see that costs coming down to GY$10,000,” the Head of State stressed. (G8)