Latest update March 26th, 2026 7:55 AM
$10.7B budgeted for Gas-to-Energy project in 2026
(Kaieteur News) – Government has set aside some $10.7 billion in this year’s budget to finance the controversial Gas-to-Energy (GTE) project.
This year’s allocation comprises both local and foreign financing, according to budget documents laid in the National Assembly.
According to the fiscal plan, $8.1 billion will be supplied through loan financing by the United States Export Import Bank (EXIM) while $2.6 billion will come from the national treasury.
The 2026 Budget states that $258 billion has already been spent so far on the gas project, which, when completed, is expected to reduce the cost of electricity by 50 per cent.
Works ongoing at the GTE site in Wales.
After missing several deadlines, government anticipates that the GTE project will finally be ready by the end of 2026. The project comprises a Natural Gas Liquids (NGL) facility, a 300-megawatt power plant and pipeline to transport the gas from the Liza Fields in the Stabroek Block to the Wales Development site, West Bank Demerara.
Exxon completed the pipeline component of the project more than a year ago and is currently awaiting the other two elements to complete construction.
In addition to the gas plants, the project involves consultancy and other costs, including the upgrade of the transmission and distribution network, new substations and a control center. Government also spent millions to compensate citizens for their land that was acquired to facilitate the gas pipeline which is pegged at another US$1 billion. Additionally, the two gas plants are expected to cost another US$759 million. Due to the delay in the project, government and the contractor sought the services of an international arbitrator, which was quietly settled. It is unclear whether the country was required to pay costs relating to the dispute.
The rising cost and lack of transparency in the project has been the subject of debate over the years with government failing to produce a feasibility study to justify the country’s single largest investment to date.
In addition to 300MW of electricity, the project will also produce cooking gas at a cheaper rate, which government says will aid in the reduction of cost of living.
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