Latest update April 16th, 2026 12:40 AM
Low urges shelving of gas development project at Wales
…says land should be repurposed for solar power generation
(Kaieteur News) – Economist, Elson Low is urging Guyana’s government to urgently reconsider its onshore gas development plans pegged for the Wales, West Bank Demerara site, in light of a recent revelation that US$100 million has been spent to stabilise the soil for the Gas-to-Energy (GTE) project.
Economist, Elson Low
In an invited comment, Low said there can be no argument that the administration failed to conduct crucial studies of the location to ensure it was suitable for such a massive undertaking.
He explained, “This land is unlikely to be suitable for any heavy industry as similar costly works will have to be done to stabilise any factories. This would mean the industrial site at Wales is dead on arrival, with the jobs and economic growth promised a fiction of the PPP’s imagination.”
The economist argued that the US$100 million figure is merely a fraction of the cost to taxpayers due to the poor site selection and government’s refusal to conduct comprehensive studies.
He pointed out, “The delays that are due to remedying the soil have resulted in a string of blackouts, each costing the nation valuable productive hours. This, combined with the cost of two power ships and several used generators, all of which have remained in operation due to these delays, brings the annual cost to Guyana well above the cost of the failed Skeldon sugar factory.”
To this end, Low suggested that a thorough feasibility study be conducted by the government to repurpose the remaining land at Wales. He urged, “The government should conduct a feasibility study to repurpose the remaining land at the Wales site for solar power generation, as that will require much lighter construction than a large-scale industrial park.”
The economist cautioned that construction of any further gas projects on the site would require similar stabilisation efforts which could amount to hundreds of US-millions more. Low therefore proposed, “The government should instead reevaluate the cost effectiveness of containerisation of gas versus a pipeline, which would provide more site flexibility for any further gas to energy projects.”
During the third installment of the International Business Conference (IBC) held at the Guyana Marriott in Georgetown, between October 14 and 16 this year, Chairman of Lindsayca, Nelson Drake disclosed that a staggering US$100 million was spent to stabilise the soil at the Wales GTE project site—a challenge that set the massive undertaking back by 14 months.
He went on to explain to delegates of the conference that there was liquefaction at the site which means that it was not fit for construction. “The equipment that we’re putting on the site is basically a gas process facility, which is easily can become a bomb at any time if it’s not done properly,” Drake pointed out.
The Wales Development Zone has been earmarked for a number of other “transformational” gas development initiatives, including phase two of the GTE project which encompasses another power plant and a second Natural Gas Liquids (NGL) facility.
President Irfaan Ali recently said that government is considering the on-site construction of a fertiliser plant. GTE project head, Winston Brassington said, “We have room for a fertiliser plant, a glass factory, data centres, a second substation to Kalpataru, an area for a small industrial electricity users.”
The GTE project aims to reduce the cost of electricity in Guyana by a whopping 50 per cent. It is expected to add 300 megawatts of electricity in its initial phase. Guyana is also poised to become a major producer of cooking gas, most of which will be exported. The first phase is expected to cost close to US$2 billion, the country’s single largest project ever pursued.
Government previously intended for the initiative to come on stream in 2025 but construction delays not only pushed the timeline back, but resulted in a dispute between the government and the contractor.
Since its inception, opposition members have been pressing government to release key documents and agreements for the project which continue to be hidden.
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