The Guyana Government has decided to go to arbitration to resolve a multi-million-dollar dispute with the company constructing the gas-to-energy project at Wales.

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 today, the Government said both parties have served notice of dissatisfaction against each other signaling the intention to initiate arbitration.

According to the release from the Office of the Prime Minister, the arbitration will be administered by the International Chamber of Commerce (ICC), with the venue in Washington, D.C. Pursuant.

All decisions in the matter will be confidential.

“Notwithstanding the disputes, both the Government of Guyana and LNDCH4 recognise the strategic importance of the project to the Guyanese economy. The contractor has resumed onsite activities, including piling, and preparations for foundation work are imminent. 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,” the Guyana government said.

The release said 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.

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.

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