GtE project to revolutionise Guyana’s energy landscape – PM Phillips

…says “Good response” to Gas-to-Energy Phase Two

Prime Minister (PM) Brigadier (Ret’d) Mark Phillips has pointed out that 2025 has been a year of real progress in the renewable energy sector. He noted that while challenges remain, the Gas-to-Energy (GtE) Project is firmly on track to transform Guyana’s energy landscape with a reliable power supply, a 50 per cent reduction in electricity costs and support for sustainable national development. “As part of our national transformation agenda, our flagship Gas-to-Energy Project is poised to revolutionise Guyana’s energy landscape by harnessing offshore natural gas to generate 300 megawatts (MW) of power that will be supplied to the national grid to reduce electricity costs and position Guyana as a major industrial hub in the region,” he posited.

The PM revealed that there have been good responses to the Guyana Government’s invitation for the submission of bids to design, finance, build and operate Phase Two of the GtE Project. Currently, GtE Phase One is underway with a 300 MW combined cycle power plant and a Natural Gas Liquids (NGL) facility being constructed at Wales, West Bank Demerara (WBD), utilising natural gas that will be piped onshore from oil operation activities in the Stabroek Block. Already, some 250 kilometres (km) of 12-inch pipelines have been laid to bring the gas onshore. This first phase, however, will only utilise 40 per cent of the pipeline’s capacity, bringing 50 million standard cubic feet per day (MMSCFD) of dry gas onshore. But with the pipelines having the capacity to push as much as 120 MMSCFD of gas, the Government had moved ahead with Phase Two to utilise the remaining 60 per cent capacity of the pipeline, which will see an additional 75 million cubic feet per day (MMCFD) of rich gas brought onshore to power a second 300 MW power plant and NGL facility right at the Wales location. Initially, seven international companies had submitted bids for the GtE Phase Two, but there has been an extension for submission, which the PM said is yielding positive results.

 Good response
“There has been an extension of the period for submission of bids. However, the response is good so far,” PM Phillips told the Guyana Times on Saturday. This was after he disclosed during an update on the work his office, which is responsible for the energy sector, has done over the last few years and planned initiatives for this year and beyond. According to the PM, “Preparations are also on the way for the next phase of growth, with phase two of the project progressing towards competitive tendering.” In the meantime, the first phase of the much-anticipated GtE Project is on track for completion at year-end. PM Phillips was given this assurance by the contractor during a site visit on January 9. At the Wales Site, all four turbines were installed on their foundations alongside all four main transformers at GtE Phase One. Meanwhile, beyond power generation, the Government is also laying the foundation for a broader energy economy through gas bottling and logistics, as well as value-added industrial development, as part of a long-term strategy to tackle the rising cost of living in Guyana. During a recent appearance on the Starting Point podcast, PM Phillips disclosed that the proposed gas bottling and fertiliser plants at the Wales Industrial Zone, WBD, will play a critical role in cost reduction for consumers. The Government plans to use the excess natural gas from the pipeline to set up these two major industrial projects at the Wales location. Currently, invitations are out for Requests for Proposals (RFPs) for the Guyana Gas Bottling and Logistics Company (GGBLC) and the Guyana Ammonia and Urea Plant (GAUP) – both of which are still open, February 19 and March 5, respectively.
PM Phillips had noted that these investments will be central to bringing down costs in Guyana, especially food prices. “Once we can reach the stage of manufacturing our own fertiliser, that will have a positive impact on agriculture, on our farmers. That has a trigger effect because if you cushion the effect in terms of the cost of production in the farming sector, it will also have an effect on the food that goes on our table and the price that we pay for food,” he noted. Currently, the Guyana Government is subsidising the cost of fertiliser to the tune of some $2 billion as part of efforts to support the local agriculture sector. The PM had pointed out that once Guyana starts producing its own fertiliser, it will not only reduce the cost but also bring in income.
“Having a fertiliser plant onboard in a couple of years down the line, it means that we will have enough fertiliser to satisfy our farmers at a far cheaper cost than they’re paying now, and of course, whatever excess is also available [will go] for export to the wider Caribbean region,” he noted. Similarly, PM Phillips had further stated that Guyana could also be exporting excess bottled gas after meeting local demands.
“When that [gas bottling plant] comes on stream, it means that we’ll be producing and bottling gas and distributing it to the people of Guyana at a far lower cost than they’re paying right now. It also means that we could market and export the gas to the wider Caribbean based on the production capacity that we envisage. We’ll satisfy the needs in Guyana and have gas exported to the wider Caribbean. So, Guyana will benefit, and the region will benefit from it too,” he asserted. These two initiatives are set to come onstream when Phase Two of the GtE Project is operationalised by 2030.