Pres Ali, US Energy Secretary discuss deepening energy ties

…Guyana affirms commitment to continue growing bilateral ties with US

President Dr Irfaan Ali, who spoke at the CERAWeek event in Houston, Texas, on Tuesday held talks with newly appointed United States (US) Secretary of Energy, Chris Wright, on the sidelines of the event, with the aim of advancing energy cooperation between Guyana and the US.

President Ali has met with the newly appointed US Secretary of Energy. The meeting took place on the sidelines of CERAWeek, an event hosted by energy analytics publication S&P Global, where industry experts are brought together to discuss issues facing the energy sector.
Wright was appointed by US President Donald Trump on a platform of expanding America’s energy security and support for natural gas, at a time when Guyana is itself pursuing its own Gas-to-Energy project.
During the meeting with Wright, President Ali highlighted the existing bilateral partnership between the two countries to advance energy security, and used the opportunity to point out strategic opportunities in regional security as well as the People’s Progressive Party/Civic (PPP/C) government’s commitment to working with the US.
“(President Ali) also underscored the strategic opportunities in regional security and reaffirmed his government’s unwavering commitment to being a stable and democratic partner. The meeting concluded with a shared commitment to deepening collaboration, strengthening ties, and fostering greater cooperation now and in the future,” the Office of the President stated.
Two US-based companies, Lindsayca and CH4, are playing integral roles in the Gas-to-Energy project specifically. Together, the two companies formed a joint venture to build the 300-megawatt (MW) Combined Cycle Power Plant and a Natural Gas Liquids (NGL) facility at Wales, West Bank Demerara (WBD) at a cost of US$759 million.
However, the two parties only recently agreed to go to full arbitration over financial claims and deadline extensions being sought by the contractor. The financial claims were filed by the contractor due to late handing over and other aspects that affected its work.
The contractors are claiming US$50 million, and had sought a six-month extension to the deadline over the delays – both of which were rejected by the Guyana Government, thus leading to a dispute resolution process that was activated. Following submissions and hearings, the Dispute Avoidance and Adjudication Board (DAAB) had given the two parties, in January, a 28-day period to decide whether to pursue arbitration.
Nevertheless, as activities, including pile-driving, resume at the GtE project site at Wales, preparations for foundation work are also imminent. It has been noted, too, that construction of a cement batching plant is underway, steel for foundation work has been delivered to the site, and a man-camp is being established with more than 170 workers currently mobilized.
Upon completion, the project is expected to substantially lower electricity generation costs, enabling Guyana Power and Light Inc. (GPL) to reduce tariffs by up to 50 per cent. This reduction has significant implications for the Guyanese economy, fostering more competitive production costs and stimulating broader economic growth.
ExxonMobil Guyana Limited (EMGL) has already finished constructing the gas pipeline, and the transmission lines and substations required for integration of the project are significantly advanced, with completion anticipated by mid-year.
According to a missive from the Government that had announced the decision to go to full arbitration, “Despite the pending arbitration, both parties remain committed to expediting the power plant and natural gas liquids (NGL) plant, aiming to ensure the timely relocation of the gas and steam turbines, which are already in Guyana, to the Wales site.”