GtE Project:

As works progress on the Guyana Government’s model Gas-to-Energy (GtE) project, two advanced gas turbines have arrived in the country from Sweden, and are slated to be installed in the 300-megawatt combined cycle power plant being constructed at Wales, West Bank Demerara.
This is according to the contractor for the GtE project, Lindsayca CH4 Guyana Inc. (LNDCH4), in a statement on Wednesday.
GtE project comprises the 300mw power plant and a Natural Gas Liquids (NGL) facility at Wales that would utilise the rich gas from the Stabroek Block offshore Guyana.
“These gas turbines, which will be at the heart of the Combined Cycle Power Plant generating 300 megawatts (MW) of electricity, are set to be installed at the project’s Gas-to-Energy site in Wales, West Demerara, ushering in a new era of energy efficiency and sustainability for the country,” the contractor said.
Country Manager for LNDCH4 Guyana, Humberto Lopez, has said, “The arrival of these cutting-edge turbines marks a crucial milestone in realizing Guyana’s energy ambitions. Once operational, they will not only expand the country’s power generation capacity, but also provide an efficient and environmentally friendly energy source for decades to come.”

Lopez went on to emphasize the strategic importance of the turbines which will power the Combined Cycle Plant and the NGL Plant, both currently under construction at the Gas-to-Energy site.
“These turbines will also use the associated gas from the oil wells. Once completed, the project is expected to reduce Guyana’s reliance on imported fuels, lower energy costs, and significantly contribute to national efforts to reduce greenhouse gas emissions.
Aligned with the Government’s vision to diversify Guyana’s energy sector, the Gas-to-Energy project is a vital step toward building a sustainable and prosperous energy future. The Combined Cycle and NGL plants will play a critical role in harnessing Guyana’s natural gas reserves, unlocking the country’s energy potential,” the contractor noted.
LNDCH4 Guyana is expected to deliver the 300mw of electricity to the national grid with these two gas turbines by April 2025.
Vice President Dr Bharrat Jagdeo has already warned that failure to meet this deadline could result in the company facing hefty liquidated damages.
The US-based consortium was awarded the US$759 million contract in December 2022 to build the power plant and NGL facility that would utilise the rich gas that would be piped from offshore Guyana.
Initially, the deadline to deliver the power was this year-end, but due to delays in handing over other aspects of the project, the contractor was given a three-month extension.
Consequently, LNDCH4 and the Guyana Government are currently in a dispute over the deadline and associated costs, resulting in an arbitration process being activated.
However, Vice President Jagdeo believes that the three-month extension is justified, and this is the basis of the Government’s arguments in the arbitration process. Already, a three-member panel has been established to resolve the dispute.
“We offered that [three-month extension, but] the company doesn’t want that… They’ve asked for a longer extension…[But] we believe that the delay in handing over the site…will justify just a three-month extension, and that’s what we’re arguing for in the arbitration. Therefore, power should be supplied to the grid from that project by April of 2025,” Jagdeo explained at a September 26 press conference.
While Government has given a three-month extension, LNDCH4 was initially pushing for a six-month extension over the delays which stemmed from ExxonMobil’s sub-contractor, GYSBI, being late in completion of site work on the 100-acre site by three months, and GAICO being late with respect to completion of the Material Offloading Facility (MOF) by another three months.
However, LNDCH4 has submitted a new timeline schedule that pushes the delivery of the power plant to October 2025. In addition to the extension, the contractor is also making financial claims to the tune of US$50 million, stating that the delays would cost the company.
Jagdeo had clarified that Government has not agreed to that new timeline set out by the contractor, warning that any delays in delivering power to the national grid would result in liquidated damages to the tune of US$11.3 million per month.
“We have an arbitration now taking place, and if we win the arbitration, they would have only by April [next year] to deliver this project. They have given a schedule which shows [a delivery date] later in the year…But I did not want the public to think that we agreed to their schedule. We have only given an approval for three-month extension. So, if we win the arbitration and we stick with that schedule, then there would be liquidating damages at US$11 million per month… So, for every month delayed, the contractor will have to pay liquidating damages of US$11 million,” the VP contended. (G8)