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PM blanks questions on US$2B Gas-to-Energy project
Prime Minister, Brigadier Ret’d, Mark Phillips
Kaieteur News – “I am not in a position to give any updates on the Gas-to-Energy project.”
This was the response provided to Kaieteur News on Thursday by Prime Minister, Brigadier Ret’d, Mark Phillips when faced with questions on the ongoing dispute between the Gas-to-Energy (GTE) contractors and the Government of Guyana (GoG).
It was reported that the two contractors CH4 and Lindsayca that were awarded the US$759M contract in December 2022 filed for a dispute resolution over a disagreement with the government on the delayed project. It was explained that while the government has accepted a three-month delay as a result of Exxon being unable to complete the site preparation, the contractors have disagreed, stating that they will require more time to complete the gas plants.
Minister of Natural Resources, Vickram Bharrat previously directed all questions relative to the project to the Prime Minister. Two journalists attached to this publication had reached out to Bharrat seeking information on the US$2 billion initiative in April; however, he said, “PM office is responsible.” He also told another journalist, “It’s under PM office.”
During Thursday’s Sitting of the National Assembly at the Arthur Chung Conference Centre, Liliendaal, Georgetown, PM Phillips was asked to provide an update on the arbitration process. He however indicated, “I am not in a position to give any updates on the Gas-to-Energy project. The last thing I know is that everything is going as planned.”
Kaieteur News went further to request the total expenditure to date on the project but again the Prime Minister regurgitated the same response. “I am not in a position to give you any update on the cost but what I can tell you is everything is going as planned and all expenditures to date has been accounted for. Nothing to worry about,” he explained.
During the Consideration of Estimates for Budget 2024 earlier this year, the PM Phillips who holds responsibility for power generation in Guyana was responding to Opposition Parliamentarian, David Patterson when he assured that documents relative to the gas project will be laid in the House. He committed to providing the total sum expended on the project to date, including costs for the transmission and distribution of electricity, consultancy and substations, among other costs, as well as the agreements signed for the project. Several attempts made by the Opposition in Parliament to secure the cost and other related information on the project have been unsuccessful.
It was reported that since June 2022, the government signed a Heads of Agreement (HOA) with the Stabroek Co-ventures that outlines the principles and conditions for the commercial and technical arrangements of the deal. The GTE project includes a pipeline, to be built and financed by the Stabroek Block operator, ExxonMobil Guyana Limited (EMGL), while the other two components, a 300 megawatt power plant and a natural gas liquid (NGL) facility is being constructed by the government of Guyana.
Minister Bharrat in a written response Patterson, in December 2022 explained that the HOA with Exxon outlines the principles and conditions for the commercial and technical aspects of the project. “Mr. Speaker, the Government of Guyana has signed a Heads of Agreement (HOA) with the Stabroek Co-ventures 30th June 2022. This agreement sets out the principles and conditions for the commercial and technical arrangements of the Gas-to-Energy Project,” Bharrat said.
Patterson in his request for the information, submitted to Parliament on October 18, 2022, had asked whether any agreements were signed with Esso Exploration and Production Guyana Limited (EEPGL) in connection with the Wales project and if yes, for the Minister to supply the House with a copy of the said agreement. However, Bharrat in his response to Patterson said, “There are other agreements on supply, buyer’s agreement, field development, licensing conditions, onshore works, and land matters that are currently being drafted. The respective agreements and policy documents will be presented to this Honourable House when they have been agreed upon and executed. All agreements are being done in a timely manner to meet the Final Investment Decision which will allow for the project to be completed by our committed deadline of December 2024.”
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