Latest update November 12th, 2024 1:00 AM
Latest News
- Govt. vows crackdown on Guyanese aiding foreign companies to flout Local Content law
- Firm involved in audit of Exxon’s expenses has licence suspended
- Gaza mother struggling to feed children says only death can end their suffering
- Fire destroys supermarket, damages hotel in Berbice
- Car dealer slapped with 68 charges over $51.57M fraud
Pile driving activities underway for delayed Gas-to-Energy project
Pile driving activities underway at the Wales Development Zone, West Bank Demerara (Photo credit: Lindsayca-CH4)
Kaieteur News – The joint venture contracted by the Government of Guyana, Linsayca-CH4, to construct two gas plants at Wales, West Bank Demerara is currently conducting pile driving works for the delayed project.
The US$2B Gas-to-Energy (GTE) project, which was initially scheduled to come on stream by the end of this year faced delays after ExxonMobil Guyana Limited (EMGL) was accused of failing to complete site preparation works before handing over to the contractors. Despite the government and the joint venture now in a dispute over cost overruns for the delay, works for the two plants are still steaming ahead.
The government in its Mid-Year report released late last month indicated that Exxon has already completed connecting the offshore pipeline to the Liza Destiny and Liza Unity Floating Production Storage and Offloading (FPSO) vessels.
In the meantime, it said, “The pipeline is on schedule to be completed by the end of 2024, with the hook-up to the station expected in the first half of 2025.” The government also reported that the Material Offloading Facility (MOF) built by Exxon is being utilized with pile driving ongoing for the commencement of the foundation activities for the two plants.
In December, the joint venture signed a US$759 million contract with the government for the design, procurement and construction of the plants. The firm will be tasked with building a Natural Gas Liquid plant and a 300-megawatt natural gas fire plant for electricity at Wales.
Lindsayca-CH4 was among five companies that had placed bids for the projects in September 2023. The American joint venture had placed the highest of five international bids to the tune of US$898M to build the plants. However, Vice President, Bharrat Jagdeo announced at a press conference that the project cost has been reduced to US$759M.
It was revealed that the government had applied to the United States Export Import Bank (US-EXIM) Bank since April last year for a US$646M loan to support the gas projects but to date, the loan has not been approved. While politicians here still remain optimistic about its approval, the project is being funded through the National Treasury in the meantime.
The Ministry of Natural Resources informed this publication that some US$520M has been spent by the government on the GTE project to date. According to the ministry, the government spent $24.813B in 2022 followed by $43.3B in 2023. This year, the government in the National Budget has set aside another $40B of local funding for the project. This means a total of $108,113,000,000 or US$520M (using Bank of Guyana’s exchange rate of 208) from the National Treasury has been budgeted to date for the project. In addition to the pipeline and two gas plants, the GTE project also includes upgrading the transmission and distribution lines, supervisory contracts, and construction of a new substation. The government had said the project would reduce the cost of electricity by half, but as key details of the project remain hidden, as the government refuses to publish the agreements for the deal, citizens question the logic of the project.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
If the system is not broken why try to fix it?
…Peeping Tom kaieteur News- A few years ago, I was at a private hospital watching the workers “clock-in” to work... more
Rising Gun Crimes in the Caribbean: Urgent Action required by all
By Sir Ronald Sanders Kaieteur News – There is an alarming surge in gun-related violence, particularly among younger... more
Weekend Cartoon
