Vice President Bharrat Jagdeo has stated that it is unclear whether there are any financial implications as a result of the gas-to-energy project being further delayed.

The Government’s flagship project, which includes a 300MW Power Plant and Natural Gas Liquids (NGL) facility at Wales, began in 2022.

However, since then it has faced multiple delays and is now scheduled to be completed in 2026.

At a recent press conference, the Vice President said despite the delays, the project will be completed.

“It will be completed and it would yield phenomenal benefits for Guyana. It is going to be completed, and if it is delayed a bit, we will explain it to the people of the country, they will understand it. The project will yield benefits,” the Vice President assured.

Mr. Jagdeo said there could possibly be some impact on the cost of the project, but that is still to be determined.

“At this stage, we are not clear about that. It could be limited. We are trying to minimize the financial implications, but every time you have a delay in a project there is an increased financial implication. For example, you would have to extend the management team, the supervision team, even if the cost of the project doesn’t increase for the contractor, but you have to pay the team supervising them more to stay on for a longer period. So, any project that is delayed would have those costs associated with them,” the Vice President explained.

Even as the current project faces delays, the Government together with the Stabroek Block operator – ExxonMobil Guyana and its co-venturers, is considering a second Gas-to-Energy Project, that would see the utilization of gas resources in the southeast portion of the Stabroek Block.

In justifying the need for a second Gas-to-Energy Project, the Vice President said once the first project is completed, the demand for cheaper and more reliable sources of energy will grow even more.

“By the time this project comes on stream, we will  need every bit of the 300 megawatts, every bit of it. So, remember a number of people are self-generating, GPL now supplies about 170, and at one stage over 200 megawatts…We estimate that private generation could be another 100 megawatts, if all switched because there will be cheaper power now, they can’t compete, like if you are generating from a generator, you can’t compete with the government cost, it would be like 11 cents per kilowatt hour. And if you have to buy fuel now is 30 cents per kilowatt hour. We are subsidizing it so its 22 cents per kilowatt hour,” the Vice President explained.

 He said the country’s growth within the next two to three years would require additional power to support new and evolving sectors.

An Alumina Plant, a Data Centre and a Fertilizer Plant are among projects that are on Government’s radar.

According to the Vice President, the second gas-to-energy project will be financed through a power purchase agreement.

“We believe we can get a Power Purchase Agreement with a company making all of the investments, taking all of the risks for the second power plant and still get the power at a price that we can sell it at 11 cents per kilowatt hour, the additional 300MW, and still make money on that part too,” the Vice President explained.

But Alliance For Change (AFC) Executive Member, Dr Vincent Adams, said it is irresponsible of the Government to pursue a second gas-to-energy project when the first is still to be completed.

 “Folks, we have yet not even learnt how to handle the first one of its kind, and we seem to be irresponsibly jumping into another disaster. As a matter of fact, we can’t even execute the most simplistic task of putting down lamp post around Georgetown, having them falling all over the place, left, right and centre. And not to mention, bringing in not one but two power ships, but blackouts get worse by the day,” Dr Adams said.

At a press conference on Friday, Dr Adams also said the Government could be heading towards another disaster that is likely to cost the Guyanese people billions of dollars.

“The first one started at less than $1B and now ballooned to up to close to $2.5B and counting. There was no feasibility study done as required by the PSA,” he pointed out.

He said after “a lot of song and dance,” the Vice President now admits that Government is unclear about the financial implications for the delays.

He said it is clear that there was no proper plan in place before the start of the first project.

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