Govt working on short-term energy solutions until G-t-E becomes operational – PM Phillips

– peak electricity demand now stands at 205MW

As the power demand rapidly grows, the Guyana Government is working on several short-term solutions to meet the energy needs of the country until its model Gas-to-Energy (GtE) Project becomes operational next year.
Currently, the peak demand for electricity in Guyana is about 205 megawatts (MW) compared to 189 MW just two months ago.
According to Prime Minister, Brigadier (Ret’d) Mark Phillips, who has responsibility for the country’s energy sector, this incremental increase in power demand is challenging and requires the government to keep ahead of that growth.
“We had a 36-megawatt [from the power ship added to the national grid] a couple of months ago that offered some little relief. We’re now engaging other suppliers, and other contractors for 60 additional megawatts before the end of the year. And we have to do this in the short term as we wait anxiously, the commissioning of the Gas-to-Energy Project that will bring the 300 megawatts, which will put all of us in a good position but not for too long,” PM Phillips stated during his address at the American Chamber of Commerce Guyana (AmCham) Energy Mixer on Thursday evening.
Earlier this year, the Guyana Power and Light (GPL) Inc. had put out a Request for Proposal (RFP) to supply 60 MW net power generation base load capacity to the DBIS through a Power Purchase Agreement (PPA) to be delivered 90 days after the contract was inked. This was in preparation for the expected increase in demand during the upcoming Christmas season.
The National Procurement and Tender Administration Board (NPTAB) earlier this week opened the bids from five companies including Karpowership Global DMCC in partnership with Urbacon Trading and Contracting Inc. – the same Turkish-based company that the Guyana Government procured the 36-MW power ship from.
The other bidders included Machinery Corporation of Guyana Ltd (MACORP) along with US-based natural gas company, Andalusian Energy LLC, JP Energy Solutions and VAS Energy.
The GtE Project located at Wales, West Coast Demerara (WCD), consists of a Natural Gas Liquids (NGL) facility and a 300-MW power plant that is slated to come on stream in the second half of 2025.
But even as the NGL facility and power plant are under construction, the Government is already talking about Phase Two of the GtE Project.
“Any Government [of Guyana] will have to continue to adhere to some level of strategic thinking and planning for the future. And that’s why as we complete Gas-to-Energy [Phase] One, we have to focus on Gas-to-Energy Phase Two,” the Prime Minister noted.
Only earlier this week, the government invited interested companies to submit proposals for a second power plant and NGL facility at Wales.
Under Phase One of the GtE Project, the NGL facility and 300-MW power plant are being constructed at Wales and will use the rich gas that will be piped from the Liza Phase I and II projects in the Stabroek Block, offshore Guyana.
ExxonMobil, the operator of the oil-rich Stabroek Block, is laying 250 kilometres of 12-inch pipelines that will bring the gas onshore. However, only 40 per cent of the pipeline’s capacity will be used in Phase One to gas up the current power plant and NGL facility in Wales, bringing 50 million standard cubic feet per day (mmscfd) of dry gas onshore.
However, with the pipelines having the capacity to push as much as 120 mmscfd of gas, the government is now moving ahead with Phase Two of the GtE Project that will utilise the remaining 60 per cent capacity of the pipeline and will see an additional 75 million cubic feet per day (mmcfd) of rich gas brought onshore.
Consequently, qualified firms are invited to respond to a Request for Proposals (RFP) to “design, finance, and operate” Phase II of the GtE Project based on a 20-to-25-year Power Purchase Agreement (PPA).
This second phase includes the design, construction, and operation of a 250 MW combined-cycle power plant, to deliver 2,100 gigawatt/hours of electricity per annum, and sold to the Guyana Power and Light (GPL) Inc. It also caters for the design, construction and operation of another NGL facility to produce at approximately 6,000 barrels per day of NGL products such as propane, butane, and C5+gasolene.
Additionally, Phase II also includes the transfer, at no cost, of excess “lean gas” estimated at 30 mmcfd, for utilisation in downstream industries, e.g. fertiliser production, to be located at Wales.
Based on the RPF document, the Phase Two projects will be located on no more than 100 acres of land, immediately adjacent to the existing 300-MW Integrated facility at Wales and will be 100 per cent owned and financed by the private sector – similar to or exceeds the project finance structure of Phase One of the GtE Project.
Additional details are outlined in the RFP document, which can be obtained from the Permanent Secretary of the Prime Minister’s Office at a fee of $25,000.
Interested parties must submit their proposals, which have to include financial projections of revenue, expenses, and investment returns by 2 PM on November 14, 2024, to NPTAB.
This move to establish a second power plant at Wales is part of the People’s Progressive Party/Civic (PPP/C) Government’s efforts to transition to clean energy, slash the costs of electricity and provide reliable energy sources for the country’s booming economy. (G-8)