The construction of the gas-to-shore project at Wales on the West Bank of Demerara is one step closer as the Cabinet has given its greenlight to contracting firm CH4 Lyndsayca Incorporated President Irfaan Ali announced today.
The President said the company was ranked number one to build the combined power plant and natural gas liquid plant at Wales and negotiations will now proceed on the Engineering, Procurement and Construction (EPC) contract.
A second company—Power China was ranked number two and may be engaged if negotiations fail to conclude a contract with Lyndsayca, the President said.
“Contract negotiations will now start with the expectation that the contract will be executed before the end of November. Key considerations in evaluation took account of the expected date of delivery of the 300 megawatt power plant by December 2024,” President Ali said.
The President said the development is a significant one, not only for energy security for the country but in achieving “an important benchmark”, referring to the reduction in the cost of energy to boost manufacturing and industrial development and for ordinary Guyanese can see a substantive reduction in their electricity cost.
The gas-to-energy project is expected to deliver energy at less than half of the current cost.
Project generation costs, taking account payment for the pipeline, operations and maintenance and capital cost recovery should total less than 5 US cents for kilowatt hour,” President Ali said.
The facility, the President said will be owned by the Government of Guyana, though there will be partners involved in several aspects.
“The 300 megawatt power plant and NGL plant will be owned by the Government of Guyana. Prior to conclusion of the construction an international firm will be competitively selected to operate the project to international standards and best practice. Exxon (Mobil) is expected to deliver the completed pipeline to the power plant by the fourth quarter of 2024 to achieve commissioning and testing of the power plant by the end of 2024” the President noted.
The project will see the establishment of a gas processing plant (GPP) and a natural gas liquids (NGL) facility, capable of producing at least 4,000 barrels per day, including the fractionation (or separating out) of liquefied petroleum gas (LPG).
A power plant will be established to generate 150 MW, with an additional 150 MW in a second phase, and that an industrial park will be established to comprise industries that could use gas, steam and/or electricity.
ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL), has guaranteed the government that a minimum of 50 million standard cubic feet of gas per day will be transported through the pipeline by 2024.