$43.3B allocated in Budget for Wales gas project

Jan 17, 2023 News

Kaieteur News – The People’s Progressive Party (PPP) Government has set aside $43.3 billion in the 2023 Budget for the Natural Gas Liquids (NGL) facility and the 300 megawatt (MW) gas fired power plant- two components of the US$2 billion Gas-to-Energy (GTE) project.

During the presentation of the $781.9B Budget on Monday, Minister with Responsibility for Finance, Dr. Ashni Singh explained that this allocation is necessary as it will not only deliver affordable, reliable and environmentally sustainable energy but will also cut emissions by 70 percent.

Additionally, he boasted that this project will trigger a series of major economic development, as energy costs will be significantly reduced.

An artist’s impression of the US$2B gas-to-energy project

“This represents the single largest investment made in the electricity sector and the single largest Engineering, Procurement and Construction ever undertaken,” the Minister shared.

Some $24.6B was paid to meet start up costs associated with the project last year, according to the government.

Also on the energy front, Dr. Singh noted that the administration has crafted an energy matrix that considers the strong forecasted future demand of electricity in the country.

According to him, the energy matrix is a careful study that addresses immediate short term interventions and transformational medium to long-term initiatives.

To this end, he pointed out that the Guyana Power and Light Inc. (GPL) is currently examining options to boost the short-term generation needs through the acquisition of an additional 50 MW of generating capacity.

To further improve the service, government this year plans to roll out 413 kilometres (km) of new distribution lines and feeders; a new 69 kilovolt (kV) transmission line from Kingston to Sophia and from Edinburgh to Hydronie; new and rehabilitated substations at Hydronie, Sophia, Columbia, Canefield and No. 53 Village; and the replacement of 320 inefficient transformers.

Meanwhile, the Finance Minister also made it clear that government will be moving in the direction of requesting fresh proposals for its Amaila Falls hydro project this year.

The Government said last year that the Chinese Contractor – China Railway First Group – had been unable to secure the finances for the project. It was explained that the contractor had as late as April 22, last, written to the government “saying that they are having a hard time doing the BOOT (Build, Own, Operate Transfer) contract and they want to shift to an EPC (Engineer, Procure, Construct) plus finance” option instead. The project was meant to generate some 165 MW of power.

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Amaila, budget, Electricity, gas, NGL

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