Maintenance costs for GTE to kick in after project is completed -Jagdeo

May 19, 2025 News

Kaieteur News- Vice President Bharrat Jagdeo has confirmed that the maintenance costs for the Gas-to-Energy Project will kick in only after the project has been completed.

During his press conference on Thursday, Kaieteur News queried whether maintenance costs for the project will be implemented after it is completed.

The vice president explained that the project’s operation and maintenance contract only comes into effect after the completion of the facility, as something cannot be maintained if it has not yet been built.

“So, O&M is a standard thing. So, we put out a bid for O&M contract I think the Siemens Group is ranked number one, and they are now negotiating with Siemens because it’s Siemens equipment that’s there, and Siemens a big global firm… to operate and maintain the plant for a period of 10 years,” he said.

Maintenance costs for GTE to kick in after project is completed -Jagdeo

Vice President, Bharrat Jagdeo

He said further that once the plant is commissioned, the contract will then be signed. “But we’re…we’re pleased that Siemens came in as ranked number one because it’s their equipment that is being installed in the plant.”

On April 9, this publication reported that the Office of the Prime Minister (OPM) received five proposals for the operation and management of the Natural Gas Liquids (NGL) plant, a component of Phase I of the Gas-to-Energy (GTE) project.

This was according to information provided during the reading of bids for the project.

Bidders who submitted proposals were J&L Supplies Guyana Inc., LSI Group S.A/ LSI Guyana Inc., Guygas Inc., Massy Wood, and Excel Guyana Inc.

The OPM, in its request for proposals, had stated that the operation and maintenance of the NGL plant is based on a NGL fractionation plant that is designed to extract liquids (C3, C4, C5+) from 50 million standard cubic feet of gas per day (MMSCFD). Gas will be delivered to the plant via a pipeline running from the offshore Stabroek block to the onshore Integrated Plant Site (ISP) and operated by others.

The document stated that the NGLs will be stored and/or dispatched from the southern side of the integrated facilities’ 100-acre site, where short-term storage will be in place to allow delivery via road and pipeline to the medium-term storage facility.

A medium-term storage facility will be built east of the integrated facility to provide for two-month storage and facilitate 2km shipments via road or river. Additionally, the project will feature a 2 km pipeline “to connect to short-term and medium-term storage with the Demerara River and Materials Offloading Facility (MOF).”

The prime minister’s office had explained that the O&M contract does not include O&M of the 300 MW combined cycle power plant and auxiliary facilities. This will be performed by Siemens Energy SAS, which will have overall responsibility for coordination of the O&M for integrated facilities.

The tender document had stated that the NGL plant is located on a 100-acre integrated plant site within the Wales Industrial Zone, approximately 25 km inland on the West Bank of the Demerara River, Region Three. Additional storage will be located on land east of the 100-acre site.

This OPM, in its initial request for proposals for this project, indicated that the GTE project was expected to start up by mid-2025. The controversial project, which lacks a feasibility study, was initially intended to come on stream by the end of 2024. It was later announced that the project would commence by 2025, however, this too has been further extended now to 2026, as explained by Project Head, Winston Brassington.

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GTE, maintenance, NGL plant, project completed.

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