Wales Gas-to-Energy Project: Project advances toward 2026 first power target – PM

The Government on Thursday said that the 300-megawatt Wales Gas-to-Energy project, the country’s largest infrastructure initiative, continues to advance, with construction works progressing and key contractual issues resolved.
In a statement issued by the Office of the Prime Minister on Thursday, Prime Minister Mark Phillips said the contractor has made progress in recent months and remains committed to delivering first power to the national grid by the end of 2026.
He described the project as a major step in Guyana’s energy transition and said the Government remains satisfied with the pace of implementation.

“The Wales Gas-to-Energy project represents a defining moment for Guyana and for the energy future of every citizen of this nation,” Phillips said. “We are satisfied with the progress being made and remain fully committed to ensuring that Guyanese households and businesses benefit.”
The project, being developed by Lindsayca Guyana Inc, is intended to use natural gas to generate electricity and support the production of liquefied petroleum gas (LPG). The Government has said the initiative is expected to reduce electricity costs by up to 50 per cent, improve reliability, and reduce fuel imports.
Electricity distribution will be handled through Guyana Power and Light Inc, with additional transmission and substation works being undertaken by Kalpataru Projects International Limited.
According to the statement, the overall project scope also includes a Natural Gas Liquids facility, transmission infrastructure, substations, high-voltage lines, and a new National Control Centre at Goedverwagting.
The Government said all major components remain within the approved financial framework, including a contingency allowance. It added that while a settlement with the contractor resulted in a 12.8 per cent adjustment to the original contract sum of US$759 million, the total projected expenditure for the wider energy programme remains within the US$1 billion budget envelope, with an additional contingency bringing the ceiling to about US$1.1 billion.
The statement noted that Government and Lindsayca Guyana Inc reached an agreement on issues previously considered by the Dispute Avoidance/Adjudication Board, including soil stabilisation works and delay-related matters. The resolution removes the need for arbitration and allows construction to continue under revised terms. Both parties have also waived rights to historical liquidated damages.
Under the revised implementation schedule, the first turbine is expected to come online by the end of 2026, followed by full commissioning of gas turbines by the first quarter of 2027 and combined cycle operations by June 2027. The agreement allows for the reinstatement of liquidated damages if milestones are not met.

Workforce increases significantly
The Government said workforce levels are expected to increase significantly as construction intensifies, reaching up to 1600 workers at peak activity in 2026. It added that local hiring will remain a priority.
Apart from electricity generation, officials say the project is expected to support wider industrial development within the Wales Development Zone, including potential ammonia and urea production, LPG logistics facilities, and storage infrastructure.
The Government said these developments are intended to strengthen industrial capacity, reduce production costs across sectors, and support long-term economic diversification.
Officials maintain that the project remains central to efforts to improve energy security and reduce electricity costs for households and businesses across Guyana.