'No end in sight for completion of Gas-to-Energy project'

‘No end in sight for completion of Gas-to-Energy project’

May 28, 2025 News

…Opposition says early elections an attempt to cover up incompetence in managing Guyana’s largest investment in history

Kaieteur News- Repeated delays, coupled with ongoing legal disputes between the Government of Guyana and the Gas-to-Energy (GTE) contractors, are indicative of a grossly mismanaged project with no end in sight.

This is the view of the economic advisor to the Leader of the Opposition, Elson Low.

The consortium, Lindsayca/CH4, was contracted by the Government of Guyana (GoG) in December 2022 to build a Natural Gas Liquid (NGL) plant and a 300-megawatt natural gas-fired plant at Wales, West Bank Demerara. The construction was delayed following a late handover of the site to the contractor by ExxonMobil. The energy giant was responsible for site preparation.

'No end in sight for completion of Gas-to-Energy project'

Economic Advisor to the Opposition Leader, Elson Low

In an interview with Kaieteur News, Low expressed concerns over yet another delay to the completion date of the project, as related by Prime Minister, Brigadier (Ret’d) Mark Phillips in the National Assembly last week.

It should be noted that the GTE project was scheduled to be completed by the end of 2025, but the project head, Winston Brassington, later informed that a more realistic timeline was the first quarter of 2026. PM Phillips, however, recently updated that the project is likely to start up in the second quarter of 2026.

Weighing in on the delays, Low explained, “It is clear that one of the reasons the government has called the election earlier than some commentators expected is because the long-awaited Gas to Energy plant will not be completed in the near future.”

Furthermore, he argued that the fact that additional funds had to be recently appropriated for expenses related to it, only a few months after the national budget was passed, demonstrates “total incompetence” by the government.

Low reminded, “That has been the pattern with this project from the beginning. This early election date is an attempt to mask the government’s incompetence managing Guyana’s largest ever single investment.”

President Irfaan Ali has announced that National Elections will be held on September 1, 2025.

Marred by frequent delays and now two different disputes to be settled through the Dispute Avoidance and Adjudication Board (DAAB), Low pointed out that the cost of the project has spiralled out of control.

He said, “These perpetual delays and this panicked announcement raise red flags that the gas-to-energy project is about to go the way of Skeldon. Guyana cannot afford such a failure, which would set the country back by at least five years, reducing non-oil economic growth by several percentage points.”

Commenting on the timeline of the project, Lindsayca/CH4, in a statement in March, said, “LNDCH4 Guyana recognises the strategic importance of this landmark project to Guyana’s energy security and economic development. We are actively collaborating with all stakeholders to address technical complexities and logistical considerations.”

The contractor added, “Following productive discussions with the Government of Guyana and other key stakeholders, we have implemented enhanced project management protocols and increased resource allocation to accelerate progress while maintaining the highest quality and safety standards.”

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completion, cost, Elections, GTE, low

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