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Govt. engaging contractor on revised timeframe for completion of GTE in 2026
(Kaieteur News) – The Government of Guyana is engaging the contractor for the Gas-to-Energy (GTE) project on a revised timeline, Minister of Natural Resources Vickram Bharrat said on Friday.
Speaking at an event in Georgetown, the minister stated, “We would have indicated in the past that we’re very concerned about the delay. It’s not something that we would have planned for, or we would have wished for. We would have loved to have that project completed by the end of this year, at least. However, we are working with the company.”
The GTE project, located at Wales on the West Bank of Demerara, includes a Natural Gas Liquids (NGL) facility and a 300-megawatt (MW) power plant and is expected to cut consumers electricity bill by 50 per cent.
“There were a few issues well ventilated in media with that company. We would have sort of that those issues, I’m happy to say that all the issues have been sorted, and the company is working, and they’ve made a commitment that they’re going to actually add more hours to the work days so that the project can be completed in a new time frame given which Prime Minister has been working through with the company,” Bharrat noted.
He reminded that the GTE projects fall under the Prime Minister’s office. Minister Bharrat noted too that the prime minister has been in direct engagement with the contractor to revise the timeframe.
Government officials had previously noted that the project is expected to be completed by mid-2026.
Back in 2022, government hired CH4 (Texas) and Lindsayca (Puerto Rico) for the construction of the power plant and NGL facility at a cost of US$759 million. However, the companies have split-up and Lindsayca is completing the project.
The project entails transporting natural gas from the offshore Stabroek Blocks Liza oilfield via a 12-inch pipeline to the site, where 50 million cubic feet (MMCFD) of gas will be converted to electricity daily.
The GTE project has faced significant delays due to ground instability. Chairman of Lindsayca, Nelson Drake, had revealed that a staggering US$100 million was spent to stabilise the unstable soil at the project site, a challenge that set the massive undertaking back by 14 months. He had outlined that the project’s timeline was severely impacted by unexpected ground liquefaction at the West Bank Demerara site. In October, it was revealed that the project is at 68.03% completion, with 89% of the engineering done, 90.46% of the procurement done, but the construction completion is only at 23%.
Ahead of the completion of the Wales GTE project, the government awarded a US$422 million contract for the extension of transmission lines for the Guyana Power and Light (GPL). The transmission lines are being constructed along the eastern corridor of the Demerara-Berbice Interconnected System (DBIS).
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