The Government’s gas-to energy project is now expected to come on stream next year, instead of later this year as was previously envisioned by the administration.
However, the pipeline component of the project is expected to be ready by the end of this year.
The Government is now hoping that the power plant will start delivering 200 MW of power by June 30, 2025 and the project completion and delivery of 300 MW of power on a combined cycle by the end of 2025.
During a presentation at the ongoing Guyana Energy Conference, Chairman of the Gas-to-Shore Energy Project Task Force, Winston Brassington said the project suffered from some work delays, including the late delivery of equipment and issues with the foundation at the location chosen for the project.
Guyana has also been seeking a US$646 million loan from the US EXIM Bank to support financing of the onshore facilities. That loan has not yet been approved.
For the pipeline component of the project, ExxonMobil is currently building out that infrastructure to the tune of US$1 Billion.
The arrangement between the Government and the company is that Exxon will be reimbursed by proceeds from the country’s offshore production. Guyana will pay Exxon and its partners US$55 million over a 20-year period, at a fixed price with no adjustments.
This year, the Government approved $80B from the National Budget to advance infrastructural works on the project, including upgrades to transmission and distribution lines.
Once completed, the project is expected to reduce electricity costs and add approximately 250 megawatts of energy to the national grid.
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