Govt inks US$8.6M agreement with Power China to construct control centre for GtE project
In keeping with its commitment to complete the Gas-to-Energy (GtE) project by 2025, the Guyana Government on Tuesday inked an agreement with Power China Caribbean to construct a national control centre.
The US$8.6 million facility is the final major piece of infrastructure needed to bring the GtE project on stream.
The contract signing ceremony was held at the Office of the Prime Minister, with Permanent Secretary Alfred King signing on behalf of the Government and Chief Representative Dan Shen signing on behalf of Power China Caribbean.
Chief Executive Officer (CEO) of the Guyana Power and Light Inc. (GPL) Kesh Nandlall was also present and signed as a witness.
The facility when completed will house Supervisory Control and Data Acquisition/Energy Management Systems/Generation Management System (SCADA/EMS/GMS) equipment.
The equipment will enable GPL to collect, store, and manage national or regional networks to ensure reliable and stable power quality in Guyana.
Prime Minister Brigadier Mark Phillips who is responsible for energy underscored the importance of the Control Centre, noting that it will play a crucial role in ensuring that government delivers on its manifesto promise to cut electricity costs by 50 per cent by 2025.
“We promise the people that we will reduce the cost of electricity by 50 per cent, and we will deliver on that promise. This is a very important component of the delivery of those promises that were made to the people as it pertains to the gas-to-energy project and the manifesto as a whole. So, we look forward to signing this contract to see work start immediately and progress to the completion of this project so that we’re ready to deliver to the people the promised electricity and the necessary comforts that come to that by mid-2025,” the Prime Minister said.
In addition, the Minister within the Ministry of Public Works Deodat Indar urged the contractors to adhere to the stipulated deadline of 13 months.
“I know that we have a timeline to deliver the power plant, but at least we are here now, and this is the final major aspect of the entire gambit of projects that surround the gas-to-energy project. This is the final one because we already did the equipment piece. So that being said, I want to implore the contractor to keep on timelines, keep on specification, and keep on timelines, because this project, it’s looked at by everyone from everywhere,” Minister Indar said.
The GtE Project includes the construction of an Integrated Natural Gas Liquid (NGL) plant and a 300-megawatt (MW) combined cycle power plant at Wales, West Bank Demerara, utilising natural gas from the country’s offshore operations in the Stabroek Block.
Upon landing on the West Coast Demerara (WCD) shore, the pipeline would continue for approximately 25 kilometres to the NGL plant at Wales, West Bank Demerara (WBD).
A whopping $80 billion was allocated in budget 2024 to advance the project and its associated infrastructure, including transmission and distribution upgrades to offtake the power.
In last year’s national budget, the project received a $43.3 billion allocation in addition to the $24.6 billion injected into the start-up of the transformational project, for the construction of an NGL Plant and the 300MW Combined Cycle Power Plant at Wales, WBD.
Between 2020 and 2023, investments have also been increased in clean renewable energy. Some 173 per cent increase in installed solar PV capacity – from 5.3 MW to 14.6MW has been recorded throughout Guyana.
For this year, work will commence on a 10MW solar farm in Berbice, an 8MW solar farm in Essequibo, and a 0.6MW solar farm in Leguan. The Government would be spending $4.8 billion to finance these projects.