Govt signs landmark US$759M agreement for gas-to-shore, NGL power plants

…will deliver cheap, reliable energy; Govt to pay keen attention to timeline

The Government has officially signed a contract with CH4 and Linsayca, for Engineering, Procurement and Construction Services for the US$759 million Integrated Natural Gas Liquid Plant & 300-Megawatt Combined Cycle Power Plant at Wales, West Bank Demerara (WBD).

During the signing of the contract on Tuesday, which took place at Office of the President, Head of State Dr Irfaan Ali noted that the project will be a transformative one. Ali also noted that it took much collaboration and bringing the best technical minds together, to be able to formulate the project.
“Let me say how very pleased I am to be part of this significant moment for Guyana. Significant from many perspectives. One, this is the largest project that we would have embarked on as a company,” the Head of State said, adding “and that brings with it, its own challenges. But it also gives us an opportunity to build capacity. And I’ve seen unparalleled dedication from the Vice President, the team from the task force, Exxon, in getting this done within a miraculous timeframe.”

Attention to deadline
Meanwhile, Vice President Bharrat Jagdeo noted that the Government will be paying keen attention to the project deadline. He explained that this project will allow businesses to benefit from reliable and cheap energy, all wile conforming with Guyana’s Low Carbon Development Strategy (LCDS) 2030.
“Timelines are important for us. The quality of the work is important. And staying in budget. These are three things that we will look for and monitor carefully. This allows us to fulfil one of the things that we mentioned in our manifesto, when we were contesting the elections. That we wanted to ensure that the people of this country, the business sector, could have reliable, cheap power.”
According to the VP, with the hydro, “that is coming hopefully soon, the next project we’ll probably go out back for, and with the solar panels that we’ve already tendered for, we’ll be able to triple installed capacity in Guyana and cut emissions by 70 per cent. So it is along the lines of our Low Carbon Development Strategy.”
Additionally, US Ambassador Sarah-Ann Lynch, in her comments on the contract, noted that the US company emerged as the most technically qualified for the project. She was optimistic that the company will continue the trend of US companies delivering quality service and noted that this will only encourage more US companies to come and invest.
“I’m also excited to congratulate the Government of Guyana on a tender process that was open, that was fair and enlisted the support of international partners. I was also so pleased that you chose to hire a second firm for the oversight of the project, allowing your Government and the people of Guyana, to know that the work will be done to the highest standards.”

Agreement
The signing ceremony took place between Guyana and US-based company LINDSAYCA, partnering with local firm – CH4 Group. The Permanent Secretary at the Office of the Prime Minister, Derrick Cummings and representatives of LINDSAYCA/CH4 signing the agreement.
The gas-to-shore project will include the power plant and a NGL plant, all of which will be constructed within the Wales Development Zone (WDZ). When it comes to the construction of a combined cycle power plant, this will generate up to 300 megawatts (MW) of power, with a net 250MW delivered into the Guyana Power and Light Grid at a sub-station located on the East Bank of the Demerara River.
The Guyana Government has already invited interested parties to make investments in the WDZ, which will be heavily industrialised and for which approximately 150 acres of land have been allocated.
Those lands were previously used by the Wales Sugar Estate.
Head of the Gas-to-Shore Task Force, Winston Brassington has previously stated that ExxonMobil Guyana, which is funding the pipeline aspect of the project out of cost oil, has found that there would be substantial savings from combining these two facilities.
The scope of the approximately US$900 million gas-to-shore project also consists of the construction of 225 kilometres of pipeline from the Liza field in the Stabroek Block offshore Guyana, where Exxon and its partners are currently producing oil.
It features approximately 220 kilometres of a subsea pipeline offshore that will run from Liza Destinyand Liza 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 would continue for approximately 25 kilometres to the NGL plant at Wales, West Bank Demerara.
The pipeline would be 12 inches wide, and is expected to transport per day some 50 million standard cubic feet (mscfpd) of dry gas to the NGL plant, but it has the capacity to push as much as 120 mscfpd.
The pipeline’s route onshore would follow the same path as the fibre optic cables, and will terminate at Hermitage, part of the WDZ which will house the gas-to-shore project. (G3)