Dispute Board hands down in ruling in complaint filed against Government by gas-to-energy project contractor

Dispute Board hands down in ruling in complaint filed against Government by gas-to-energy project contractor

The Guyana Government has announced plans to consult with ExxonMobil as well as relevant legal and technical advisors on the way forward following a decision by Dispute Avoidance Adjudication Board, which has handed down its ruling on a complaint by the contractor involved in the gas-to-energy project made against the government.

The Government has not provided any information on the decision.

The contractor, Lindsayca/CH-4, had moved to a Dispute Adjudication Board after it could not resolve a stalemate with the Government of Guyana over the sum of US$50 million that the company claimed it is owed because the project site was delivered to it three months late.

In a statement on Monday night, the Office of the President explained that the Board made its ruling last week and in relation to the ruling, the parties to the dispute resolution process are bound by certain rules of confidentiality.

The release did not state whether the board ruled in favor or against the Guyana Government.

The release noted, however, that following the decision the Parties have 28 days to determine if they wish to refer the decisions, or any part of it, to Arbitration, which would be the next stage in the dispute resolution process.

“It would be recalled that certain aspects of the project were executed on the GOG’s behalf by Exxon Mobil. The GOG will, therefore, in the next few weeks, in consultation with its partners, including Exxon/Mobil, as well as relevant legal and technical advisors, determine the best course forward for GOG,” the Government stated.

The Government said its priority continues to be to ensure that the project is completed in the shortest possible time and in keeping with contractual specifications, with a view to bringing the power plant and the NGL plant into operation and delivering the associated benefits to the Guyanese People as soon as possible.

The Gas-to-Energy (GtE) project is divided into three components – Pipeline, Power/NGL Plant, and Transmission Line/Substations. The Pipeline component includes a 250-kilometre 12-inch pipeline from two Floating Production, Storage and Offloading platforms (FPSOs), to deliver some 50 MCF/D (1,000 cubic feet per day) of gas to shore, although the pipeline has the capacity for 120-plus MCF/D.

The  Power/NGL Plant component is the 300 MW Combined Cycle and NGL Facility, while Component 3 will have Transmission Line/Substations of  85 kilometers of 230 & 69 KV transmission lines, 3 new substations, and upgrades to 2 other sub- stations.

Government said When completed, the project’s benefits will include a doubling of the country’s electricity generating capacity to meet growing demand and a reduction in the cost of generation, thereby enabling electricity prices paid by consumers to be cut by 50 per cent.

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