GCCI didn’t see any feasibility study on gas project – Rambarran  

Feb 15, 2024 News

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– but supporting it based on public info and internal analysis 

Kaieteur News – The Senior Vice President of the Georgetown Chamber of Commerce and Industry Richard Rambarran said that the business body has not seen any feasibility studies on the gas to energy project, but is relying on publicly available information to justify its position that such an initiative is needed.

The statement was made during a press conference the GCCI held on Wednesday at the Pegasus Corporate Suites, in GTT’s Boardroom. It must be noted that Kaieteur News had initially reached out to the chamber to answer key question on the project, but the business body opted instead to hold a news conference to address the issue. This newspaper’s enquiry of the GCCI was premised on the fact that last week it was revealed that the chamber had written the US Exim Bank begging it to approve   a US$646M loan being sought by the Irfaan Ali Government to build the project.

Rambarran was asked by the media if the GCCI was privy to any feasibility study done by the government. He responded, “No we haven’t. So, we have done our own analysis of it and we are standing on what we analyzed about the project.”

He further explained that the GCCI has “done our own analysis we have not looked at other feasibility studies or other studies. We as a Chamber of Commerce we have taken the information and we have done our own analysis.” The information referred to is what the government has put out in the public’s domain and he believes that the information was sufficient to have their independent study done, and based on the findings of this analysis, they took the decision to, “stand independently by the project, not secondarily based on anybody else’s information. We have done our own (study), and we would have been informed by experts.”

“I can tell you as a trained economist we have that publicly available information that we have done the analysis on. I will make it available to you guys just give it a couple of days. In the past we have trusted and stood by our analysis. I am saying to you, as an elected member of a private sector umbrella organization to which I give a preamble we have professionally undertaken our analysis and this is what we have seen.” Ramabarran stated.

This publication asked the President of the GCCI Kester Hutson if he felt members of the private sector would feel comfortable investing in the project on their own, in light of the GCCI not being privy to a feasibility study. He said: “Our responsibility or my responsibility as president and by extension the executive and councilor is to inform our members with the requisite knowledge that is being shared. So as much information that we have we will share with our members and of course we are well informed to take that business posture to invest. Once sufficient information is presented then certainly yes.”

Kaieteur News reported last week that GCCI has resorted to writing a letter to the United Stated (US) Exim Bank, pleading for it to fund Guyana’s US$2B Gas to Energy project. In the letter to the bank’s President, Reta Jo Lewis, GCCI wrote: “As you are aware, the Government of Guyana would have applied for a funding facility from the U.S. EXIM Bank to help finance this watershed initiative for the people of Guyana,” before adding that it’s support will contribute significantly to Guyana’s energy transition, reduce reliance on fossil fuels, and promote sustainable practices.

GCCI continued that the GTE project will reduce electricity cost in Guyana by half for its citizens and enterprises. “The GCCI sees this project as having immense potential to drive economic growth, enhance energy security, and promote sustainable development in the Western Hemisphere”, GCCI told the bank before moving to advice its president to not listen to the pundits who have been criticising the gas project. The Guyanese business body said that it condemns “certain attempts by a small minority of individuals to discredit the project and discourage the US Bank from providing the financial support to complete the project. “…we are appalled at missives penned requesting that the loan to fund the initiative be blocked”, GCCI said. The government has submitted an application to the US bank US$646M to build a natural Gas fire power plant and a Natural Gas Liquids facility at Wales, West Bank Demerara (WBD) but it has not been approved.

Stakeholders here and overseas over the past three years have expressed deep worry about the project set to be the largest such undertaking in the country’s history. Many stakeholders contend that the PPP/C’s blueprint for this project is cloaked in mystery and feasibility concerns. Some sections of society even worry that the project could give the country a debilitating taste of bankruptcy. Echoing the deep-seated fears percolating through the citizenry last year was the Institute for Energy Economics and Financial Analysis (IEEFA). The US based think tank which focuses on issues related to energy markets believes citizens have every right to be dreadfully concerned about this project. In fact, Tom Sanzillo, IEEFA director of financial analysis previously sounded the alarm on the potential fiscal calamity this project might unleash upon the nation’s coffers. In a concerted effort to shed light on the monumental risks of this initiative, IEEFA collaborated with renowned energy consultant Cathy Kunkel. Their joint findings paint a grim picture, suggesting that the venture may result in an over-saturated grid, churning out electricity that far exceeds the genuine demands of the Guyanese populace. In the ensuing weeks, Kaieteur News will be unraveling the damning findings of the IEEFA’s 33-page report. Today marks the first publication. Stay with us on this gripping journey into Guyana’s power conundrum.

When IEEFA’s experts examined GPL’s expansion plans for 2022 and 2023, it was firmly concluded that the state-owned company does not know how to properly estimate the country’s energy demand, or even how to meet same in a practical and affordable manner. In fact, they made the startling discovery that GPL has a history of overestimating energy demand.

The PPP/C’s plan for a gas-to-energy project entails partnering with ExxonMobil Guyana Limited to construct a massive 218 km offshore pipeline structure that would bring gas from the Stabroek Block’s Liza field onshore and feed into two facilities, a Natural Gas Plant and a 300MW Power Plant, both to be situated at the Wales Development Zone.

The 12inch pipeline being constructed by Exxon will have the capacity to transport 50 million cubic feet per day (50 MMcf/d) from the offshore Liza field, and will be able to deliver a minimum volume of no less than 10 MMcf/d. The Government of Guyana and US consortium, LINDSAYCA/CH4 on December 13, 2022 signed the contract for the construction of the integrated Natural Gas Liquids Plant and the 300-megawatt (MW) combined-cycle gas turbine (CCGT) power plant at Wales, West Coast Demerara (WCD), Region Three. The historical signing of the contract for the US$759 million project took place at the Office of the President, Shiv Chanderpaul Drive.

In January 2023, President Irfaan Ali witnessed the signing of a contract between the Guyana Power and Gas Inc. and Engineers India Limited (EIL) for the provision of Consultancy Services for the Wales Natural Gas Liquids (NGL) facility as well as the 300 mega-watt (MW) power plant. That contract is pegged at US$22,143,190.

 

 

 

 

 

 

 

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• analysis, feasibility, GCCI, information, study

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