Local companies eager for finish of gas-to-energy to start value added production – Bharrat

…says numerous requests received, including BOSAI for alumina plant

The Government has received many requests and expressions of interest from local companies which are eagerly anticipating the start-up of the Gas-to-Energy (GtE) project so they can begin manufacturing and value-added production, made possible by cheaper electricity.
During a press conference on Tuesday, Natural Resources Minister Vickram Bharrat disclosed the following information as he highlighted China-based Bosai Minerals Group Guyana Inc (BMGG), a major player in the local bauxite mining industry.
Operating out of Linden, Region 10 (Upper Demerara/ Berbice), BOSAI has been operating in Guyana since 2007; and according to Bharrat, the company is exploring the opportunity to set up an alumina plant.
“The Gas-to-Energy project is on stream. You would have seen only last week we were on site, and we would have signed that agreement for the loan with the US EXIM Bank, making sure the project is financed and it will be completed as promised, bringing the benefits that will be derived from it. That is: the reduction in electricity costs, reliability, and ensuring we can be competitive, especially in the manufacturing and industrial sector,” Minister Bharrat has said.
“Already, there are requests from many companies locally to be engaged and to move towards value-added. I can tell you, for example, BOSAI. We’re engaging them in looking at the possibility of an alumina plant, provided they can provide cheaper electricity in excess of what will be available,” Bharrat explained.
According to the minister, these companies fuel hope that Guyana’s value-added production would increase dramatically once the Gas-to- Energy project comes on stream during the course of 2025, and electricity prices are cut.
“So, already, we’re seeing signs and indications that these companies are willing to further invest in value- added, once cheaper electricity is available,” the Minister told media operatives.
President Dr Irfaan Ali has only recently affirmed that plans for an alumina plant are still under consideration as Government explores options tied to the second GtE Project. These options include potential collaboration with Suriname to jointly develop the bauxite deposit that exists between the two countries.
During his year-end press conference, President Ali, in addressing questions about the Government’s plans for an alumina plant, had emphasized that the GtE initiative would play a crucial role in making the alumina plant a viable endeavour. He explained that an alumina plant is one of the possibilities Government is mulling to go along with the gas-powered industrial hub that would be a critical component of Phase Two of the GtE Project.
Minister Bharrat had previously indicated that investors were eyeing the Tarakuli bauxite deposit near Orealla in Region Six. He had stated that Tarakuli is one of the largest bauxite deposits remaining in Guyana, and that it is of high quality and is untouched. This, he had said, was another reason why the country should establish an alumina plant.
Meanwhile, a US$527 million loan agreement has been signed between the Guyana Government and the US Export-Import (EXIM) Bank last week to finance the GtE project. This signing was followed by a tour of the construction site.
Key accomplishments of the GtE Project include completion of soil stabilization works. GtE Project Lead, Winston Brassington, had only in September disclosed that more than 1.65 million cubic metres (m3) of sand, along with over 160,000 m3 of loam and 25,000 m3 of crusher run had been purchased for the soil stabilisation exercise on the 100-acre Wales project site.
A joint venture formed by United States-based companies Lindsayca and CH4 was, in November 2022, awarded the US$759 million contract to build the 300-megawatt (MW) Combined Cycle Power Plant and a Natural Gas Liquids (NGL) facility at Wales, West Bank Demerara (WBD) – key components of the GtE Project.
Initially, the GtE Project was scheduled to be completed by 2024 year-end, but following setbacks in handing over some components, including site preparation works, LNDCH4 was given an extension to this year to deliver the power plant.
However, the contractor wants more than the three-month extension that the Government has granted, along with the financial claim – both of which were rejected by the state, hence the move to the dispute resolution process.
Government has already made it clear that if LNDCH4 does not deliver power by the end of April, that company would face liquidated damages.