GtE Project plans expanding to support 2nd power plant – EMGL

– as significant progress made in appraising gas in south-east Stabroek Block

ExxonMobil Guyana Limited (EMGL) had reported significant progress last year in appraising the gas resources in the south-east Stabroek Block it controls, noting that the Gas-to-Energy (GtE) Project plans continue to expand to support the Government’s efforts to build out a second power plant.

This is contained in the company’s 2024 Annual Report, in which they laid out the progress they made not only in completing its part of the GtE Project, but also in appraising the Stabroek Block alongside its co-venturers CNOOC and Hess Corporation. “In 2024, we also made significant progress in appraising the non-associated gas resources in the south-east of the Stabroek block, and in parallel, advanced plans to maximise the value of Guyana’s gas for all stakeholders,” EMGL said. EMGL explained that in 2024 they were able to complete the GtE Project pipeline and riser connections to the Liza Destiny and Unity FPSO (Floating Production Storage and Offloading) vessels.
According to the company, this is “a crucial step towards the project’s goal of reducing electricity costs for Guyanese families and businesses by half and stimulating growth in other sectors of Guyana’s economy.”
“Plans for the GtE Project are expanding. There is the potential to increase gas production from the originally planned 50 million cubic feet per day to 120 million cubic feet, supporting a second power plant as part of the Government’s GtE Phase II,” the report further stated.
According to the company, the completed pipeline extends from Nouvelle Flanders on the West Coast Demerara (WCD) to Reynstein on the West Bank Demerara (WBD). Additionally, EMGL explained that the pipeline will operate at high pressures above 1,800 pounds per square inch.
“This additional, affordable natural gas supply will enhance power generation and grid stability, supporting further growth in the country’s economy,” the Exxon Mobil subsidiary explained in the report.
Meanwhile, EMGL also assured that the safety around the pipeline is an important part of the company’s collaborative effort, along with the People’s Progressive Party/Civic (PPP/C) Government and surrounding communities.
“To help raise awareness about the importance of pipeline safety, EMGL conducted door-to-door interactions with landowners, farmers, and schools and held numerous community meetings and open houses,” EMGL said.
Earlier this year, the Government of Guyana, through Guyana Power and Light (GPL), signed a total of US$422 million in contracts to upgrade the local energy infrastructure ahead of the GtE Project’s completion.
The project will see the construction of 155-kilometres (km) of 230 double-circuit transmission lines, 167-km of 69 Kilovolts (kV) double-circuit transmission lines, the construction of five new substations, and the upgrading of the Kingston substation.
Meanwhile, LNDCH4 was awarded the US$759 million contract in November 2022 to build the 300-megawatt (MW) Combined Cycle Power Plant and a Natural Gas Liquids (NGL) facility at Wales, WBD – key components of the first phase of the GtE Project.
Upon completion, the project is expected to substantially lower electricity generation costs, which have significant implications for the Guyanese economy, fostering more competitive production costs and stimulating broader economic growth. In addition to the gas pipeline that EMGL has completed, the transmission lines and substations required for integration of the project are also significantly advanced. Back in September 2024, the Government, through the Office of the Prime Minister had also invited companies 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).
Phase Two of the GtE Project is expected to see a second power plant and NGL facility being built at Wales, WBD. And last week, the bids for this second plant were revealed by the National Procurement and Tender Administration Board (NPTAB). The second phase of this transformative project includes the design, construction, and operation of a 250 MW combined-cycle power plant, to deliver 2,100 Gigawatt/hours (GWh) of electricity per annum, and sold to GPL.
The project 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 million standard cubic feet per day (mmscfd), for utilisation in downstream industries, e.g. fertiliser production, to be located at Wales.