Latest update March 26th, 2026 12:30 AM
Five contractors shortlisted for Phase Two of Gas-to-Energy project
(Kaieteur News) – As Phase One of the Gas-to-Energy (GTE) project continues to drag to the finish line, government is pressing ahead with Phase Two of the development at Wales, West Bank Demerara.
On the final day of the 2026 Budget Debate, Prime Minister, Brigadier (Ret’d) Mark Phillips revealed that five Engineering, Procurement, and Construction (EPC) companies have been shortlisted already to bid for the project.
He said, “Five EPC bidders were shortlisted for the Phase Two expansion, with bids due by March 31, 2026. Progress was also made on operational readiness, with negotiations for the Power Plant operations and maintenance contract advanced and the NGL (Natural Gas Liquids) Facility tender completed and submitted for Cabinet consideration.”
Prime Minister, Brigadier (Ret’d) Mark Phillips
The prime minister added that following the evaluation of bids and the securing of necessary approvals, the selected contractor will be mobilised to commence construction within the year.
Phase Two of the gas project involves the construction and operation of a 300 megawatt (MW) combined-cycle power plant to deliver 2,600 gigawatt hours (GWH) of electricity per annum. The power will be sold to the Guyana Power and Light Inc (GPL) via a 20-year Power Purchase Agreement (PPA). In its previous RFP, government requested a 250 MW power plant.
Additionally, Phase Two of the GTE project includes the design, construction and operation of an NGL facility to produce at approximately 5,800 barrels per day (bpd) of NGL products (propane, butane, and C5+), utilising 70 MMCFD of “rich gas”.
Notably, the contractor will be expected to transfer to the GoG, at no cost, excess “lean gas,” estimated at up to 20 MMCFD.
Beyond the core facilities, PM Phillips told the National Assembly that procurement advanced for the storage and offloading infrastructure, the Gas Bottling and Logistics Project, the Ammonia and Urea Plant, and the Amaila Falls Hydropower Project under a Build, Own, Operate and Transfer (BOOT) model.
In the meantime, he pointed to the progress recorded on Phase One of the gas project, still under construction. According to him, the construction will remain on an accelerated schedule, with the programme progressing toward simple-cycle first power by the end of 2026.
He said, “in 2025, the programme moved firmly from planning into large-scale execution. At Wales, Phase One construction advanced materially under the Engineering Procurement and Construction (EPC) works programme. Approximately 67 per cent of foundation piling was completed; more than 3,000 cubic metres of structural concrete were poured; all four gas turbines were transported and positioned on their foundations; six power transformers were placed; and structural foundations for four heat recovery steam generators were completed. Large-scale equipment transportation to the site also commenced, sustaining construction momentum.”
Meanwhile, the prime minister noted that works to the national grid also progressed rapidly. By the end of 2025, transmission and substation infrastructure reached about 90 per cent completion, positioning the system for partial commissioning by the end of the first quarter of 2026 and full commissioning in the second quarter, he explained.
To this end, he said, “The first priority for 2026 is the completion and commissioning of the national grid evacuation infrastructure. Transmission lines and substations will reach partial commissioning by the end of the first quarter of 2026, establishing immediate grid readiness. Full commissioning is scheduled for the second quarter of 2026, ensuring that the national grid is prepared to receive and distribute new generation capacity as it comes online.”
He added that negotiations with Siemens Energy for the Power Plant operations and maintenance (O&M) contract will be concluded in the first quarter of 2026. Additionally, for the NGL Facility, Cabinet consideration and execution of the O&M contract will be advanced during 2026 to ensure readiness for commissioning and sustained operations.
With regards financing for phase one of the gas project, the Prime Minister reminded the House that the United States Export Import (EXIM) Bank in 2025 approved a US$527M loan to support the NGL and power plant. Consequently, he explained that the first loan disbursement of US$224M will be made in the first quarter of 2026. The remaining US$285 million dollars will be drawn down during the second and third quarters of the year, aligned with equipment shipment schedules and verified project milestones.
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
