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Foreign companies dominate bids for Phase II of Wales gas project
Kaieteur News- The Government of Guyana has received seven proposals for the design, finance and operation of the second phase of the Gas-to-Energy (GTE) Project.
The bids which were opened on Monday at the National Procurement and Tender Administration Board (NPTAB) office saw companies and consortiums from countries such as the United Kingdom (UK), United Arab Emirates, Guatemala, Puerto Rico, and a lone firm from Guyana all vying for the contract.
An artist’s impression of phase one of the GTE project
According to the tender opening, the bidders are: Karpowership Global DMCC (United Arab Emirates); consortium – ENKA UK Construction Limited and Onex Holding SCS (Luxembourg); Andalusial Energy (United States); J&L Supplies Guyana Inc. (Guyana); CXL Solutions LLC, and LSI Group Sociedad Anomina (Guatemala); CH4 Systems LLC and Lindsayca CH4 Guyana Inc. (Commonwealth of Puerto Rico); and consortium – LS Engergia Inc., Controlmatik, ESE Servicios Electromecanicos and Carlos Caballero (Florida, USA).
The project is being undertaken by the government through the Office of the Prime Minister (OPM). This publication understands that the prime minister’s office had issued a tender for the project last year, but discarded that notice and issued a new and updated tender earlier this year.
In the new tender, the government revised the number downwards with respect to gas that will be available daily for the project, as well as the expected Natural Gas Liquids (NGL) to be produced. It has, however, increased the electricity generation expected to be produced from Phase Two of the gas project.
According to the document, the government will be securing from ExxonMobil Guyana Limited (EMGL), 70 million cubic feet (MMCFD) of rich gas which it intends to use in another Integrated Power Plant and NGL facility. The previous RFP indicated that an additional five million cubic feet of gas per day would have been available.
Nevertheless, it noted that interested firms will be required to design, construct and operate a 300 megawatt (MW) combined-cycle power plant to deliver 2,600 gigawatt hours (GWH) of electricity per annum. The power will be sold to the Guyana Power and Light Inc (GPL) via a 20-year Power Purchase Agreement (PPA). In its previous RFP, government requested a 250 MW power plant.
Additionally, phase two of the GTE project includes the design, construction and operation of an NGL facility to produce at approximately 5,800 barrels per day (bpd) of NGL products (propane, butane, and C5+), utilizing 70 MMCFD of “rich gas”. This is a reduction compared to the previous RFP, which anticipated 6000 bpd of NGLs.
The contractor will be expected to transfer to the government, at no cost, excess “lean gas,” estimated at up to 20 MMCFD, for utilisation in downstream industries, for example, fertilizer production, to be located at Wales.
According to the office, “phase two will be located on no more than 100 acres of land, immediately adjacent to the existing 300 MW integrated facility. The project will be owned and financed 100 per cent by the private sector, under a project finance structure, which will design and construct the integrated facilities, to a standard and specification that meets and or exceeds that of phase I of the GTE.”
It noted too that investors will recover their investments from the sale of electricity via a 20-year term PPA at a price per KWH and monetisation of the NGLs. At the end of the PPA term, the facilities will revert to the GOG at no cost.
Phase II of the GTE project will enjoy the same fiscal incentives as the first phase.
(Foreign companies dominate bids for Phase II of Wales gas project)
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- Gas-to-Energy project, National Procurement and Tender Administration Board, Office of the Prime Minister, Phase two, seven bids
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