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‘Dull future ahead for Phase Two of Gas-to-Energy Project’- AFC
Kaieteur News – As Phase One of the Gas-to-Energy (GTE) Projects lags behind, with no fixed date of completion, the Alliance For Change (AFC) sees a dull future for Phase Two of the initiative, to be financed by private investors.
Former Minister of Public Infrastructure, David Patterson
Former Minister of Public Infrastructure and Chairman of the Party, David Patterson during a media conference on Friday told reporters that Phase One of the GTE project is unlikely to be completed by the 2025 deadline. He said reports indicate that pile driving activities have only just commenced with equipment for the 300-megawatt (MW) power plant and Natural Gas Liquids (NGL) facility yet to arrive.
Patterson put Guyanese on notice that they should expect a lengthy delay to the completion and start-up of the gas plants. The ambitious project, expected to cost at least US$2B has been delayed due to the late handing over of the site to the contractor, Lindsayca-CH4 by ExxonMobil Guyana Limited (EMGL). The operator of the Stabroek Block was tasked with preparing the site for the project but sub-contractors hired by the company however completed the preliminary works later than expected.
Government and the joint venture (Lindsayca and CH4) have sought to resolve the dispute over the delayed works through arbitration. That process is ongoing. Phase One only utilizes 50 million standard cubic feet per day (MMSCFD), which amounts to 40% capacity of Exxon’s 250 kilometer 12-inch pipeline. Phase Two will make use of the remaining 60% capacity of the pipeline.
The selected bidder will be tasked with the design, construction, and operation of a 250 MW combined-cycle power plant, to deliver 2,100 gigawatt hours (GWH) of electricity per annum. This will be sold to the Guyana Power and Light Inc (GPL) via a Power Purchase Agreement (PPA). Government also wants the private investor to construct and operate a NGL facility to produce approximately 6,000 barrels per day of NGL products (propane, butane, and C5+gasolene).
The AFC’s David Patterson said, “If Phase One is already developing into a white elephant, you could imagine what Phase Two would be. Maybe a kangaroo or giraffe. I want to say quite clearly, this is another money for the boys project.”
He argued that the administration has failed to put systems in place to provide stable electricity for the country, pointing to the purchase of used generators and a leased power ship to provide relief to the frequent power outages being experienced across the Demerara-Berbice Interconnected System (DBIS). Patterson was keen to note that even with those measures, the government is still seeking more electricity to supply the national grid.
As such, the former Minister said, “This idea of going for another Phase Two is typical PPP. Money for the boys, lack of transparency, they obviously want to give the impression that they are on it but it’s all a smoke screen.”
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