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All Guyanese will benefit from GTE project, some directly and some indirectly – Prime Minister
Prime Minister, Brigadier (Ret’d), Mark Phillips
Kaieteur News – The 300-megawatts of power generated through the highly touted Gas-to-Energy (GTE) project will not reach the citizens located in far-flung Hinterland Regions, however, Prime Minister of Guyana, Brigadier (Ret’d) Mark Phillips has assured that Guyanese across the 83,000 square miles will benefit from the venture.
He was at the time responding to questions relating to Power Generation, during the Consideration of the 2024 Budget Estimates, in the National Assembly on Tuesday. During his presentation in the House Prime Minister Phillips told the House that some citizens will benefit directly from the project, while some will benefit indirectly.
Government has pegged the Gas-to-Energy (GTE) project at US$2B, however, the initiative will only power the national grid that supplies electricity to Regions Three, Four, Five and Six. The project entails a pipeline to transport the gas from the Liza Fields in the Stabroek Block as well as a Natural Gas Liquids (NGL) Plant to treat the gas a 300-megawatt power plant.
Opposition Member of Parliament (MP), David Patterson had requested the Prime Minister (PM) to explain why government was not making efforts to reduce the cost of electricity in Lethem, Region Nine so that those citizens too can enjoy cheaper electricity. He said, “With this Budget we will be giving the gas to shore project almost $80B to augment (electricity in) Regions Three, Four, Five and Six. We are committing $80B to the Gas to shore project with the hope and the dream that there is a reduction in (electricity costs)…why is it we can’t do equally for our colleagues outside?”
In response, the Prime Minister informed the National Assembly, “The entire country, every Guyanese on the coastland and the Hinterland will benefit from the Gas to Energy project. Some will benefit directly and some will benefit indirectly. When the gas to energy project comes on stream and on the coastland the price goes down by 50%, the savings will be utilized to ensure our brethren and sisteren in the Hinterland benefits too. This is a well-thought out project, this is not a piece meal operation.”
Presently, the township of Lethem receives power through a solar power initiative; however, they continue to pay the Lethem Power Company for the delivery of electricity.
According to the Prime Minister, each month government saves 31,000 litres of fuel. Citizens in Lethem there currently receive the first 15 kilowatt hour (kWh) free; however for 16-50 kWh they pay $60 per kWh, and for 51 kWh and above they are charged $80 per kWh, the Prime Minister explained.
Patterson asked why the savings on fuel were not being passed on to the consumers through a tariff reduction to the citizens in Lethem and surrounding communities.
To this end, Phillips reasoned, “We cannot pass on the savings because we start from a position where we have to provide a subsidy for Lethem. It is already heavily subsidized so by saving 31,000 litres per month with the solar system, that itself helps us to keep the lights on in Lethem, so there is nothing to pass on.”
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