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Govt. eyes US$300M fertilizer plant at Wales
— bidders invited for major Gas-to-Energy spin-off
(Kaieteur News) – The Government of Guyana (GoG) is pursuing the development of a fertilizer plant locally, which is likely to cost US$300 million.
While it is unclear whether any studies relating to the plant were conducted, the Office of the Prime Minister (OPM) in an advertisement said, “The Government of Guyana (GoG) invites EPC (Engineering, Procurement and Construction) proposals to design, engineer, construct (and then operate), an ammonia/urea plant.”
President Irfaan Ali
Through a public-private partnership model, government is looking to manufacture 300,000 tons of fertilizer per annum, commencing between 2027- 2028.
Interestingly, companies have been asked to submit a draft EPC contract “reflective of best practice and/or executed” by firms, and a draft operator’s contract. The developer will also share its “assumptions” on taxation for both the EPC and Operations stage of the project, according to the request for proposals issued by the OPM.
According to the Prime Minister’s Office, the fertilizer plant will utilize gas from Phase Two of the Gas-to-Energy (GTE) project. Based on preliminary EPC proposals received to date, government pointed out that the project cost is not expected to exceed US$300M.
The Guyana Ammonia and Urea Plant (GAUP) is to be built at Wales, West Bank Demerara, east of the GTE Combined Cycle Power Plant and Natural Gas Liquids (NGL) Facility. “GAUP will receive lean gas from Guyana Power and Gas Inc. (GPGI), a fully owned Government of Guyana (GOG) company,” OPM stated.
GAUP, a company to be incorporated, will manufacture and sell ammonia/urea (fertilizer) to the local and regional market. Government noted that project is specifically aimed at lowering the cost of fertilizer in Guyana and the broader region, including Northern Brazil and the Caribbean.
It was explained, “GAUP will be a private company with financing secured from the private sector. GOG shall be responsible for (i) establishing GAUP. (ii) structuring and securing financing, (iii) arranging all contracts and permits. GAUP will be structured on a Project Finance basis.”
As part of the bidding process, interested companies must possess experience in EPCs and operating of similar projects, as well as provide details of the proposed size or perimeter of land that will be required for the development.
Additionally, government expects a project schedule showing time for design/engineering and time for construction, as well as local content goals among others.
Responses to the RFP must be submitted by January 22, 2026.
During a site visit of the GTE project earlier this month, President Irfaan Ali revealed that government was eyeing the location for a fertilizer plant, among other initiatives to utilize and monetize the country’s gas resources.
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