Lack of feasibility and environmental studies for Gas-to-Energy project flagged by AFC in meeting with US State Department

Oct 12, 2024 News

Kaieteur News – The Alliance For Change (AFC) recently raised concerns over the lack of feasibility and environmental studies for the government of Guyana’s (GoG’s) US$2B Gas-to-Energy (GTE) project, in a meeting with the United States Department of State.

An artist’s impression of the Gas-to-Energy project

Leader of the party, Nigel Hughes during a press conference on Friday said the AFC addressed the project, highlighting the lack of adequate studies, citing that this approach has been applied to other major projects.

“In relation to the gas to energy project we did say that we were concerned that this was an approach that the government had adopted across several projects but particularly with the gas to energy project we were concerned that there was no feasibility (study), we were concerned that they would be approaching a financial institution like (US) EXIM Bank without any feasibility work being done,” Hughes explained.

The government had applied to the US-EXIM Bank in April 2023 for a US$646 million loan to aid in the construction of the Natural Gas Liquids (NGL) facility and the 300-megawatt power plant. Another key component of the project- a 250 kilometers pipeline- to transport the gas is being constructed by American oil giant, ExxonMobil. The pipeline is expected to cost approximately US$1B.

Hughes noted that the party indicated to the US State Department that earlier studies conducted by the previous government identified several optimal locations for the project; however, the Wales site, on the West Bank of Demerara was selected, though not highlighted as an option by the Consultant, at the time.

In addition to the GTE project, Hughes said he also raised the need for a new electoral list; the use of biometrics; government’s approach to the financial management of the country, especially in pursuing projects which were not backed by feasibility studies. He said it was also brought to the attention of the US State Department that none of those major projects were discussed in the National Assembly.

Hughes said the AFC made it clear that there was a real risk that this continued attitude by the government could lead to jeopardizing Guyana through excessive borrowing and lack of feasibility studies.

Meanwhile, Chairman of the Party, David Patterson added that concerns were raised about the ongoing registration activities by the Guyana Elections Commission (GECOM), particularly with regard to reports of Venezuelan migrants being registered.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

feasibility, gas, GTE, Nigel Hughes, US State Department

Latest News