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AFC sounds alarm over ballooning cost of Wales gas project, lack of transparency
…accuses Govt. of inflating country’s projected energy demands to justify project
(Kaieteur News) – The Alliance For Change (AFC) on Thursday raised an alarm over the ballooning cost of the Wales Gas-to-Energy (GTE) project which continues to be executed in secrecy by the government of Guyana (GoG).
“When first announced, the public was told that the Gas‑to‑Shore project would cost approximately US$900 million to US$1.3 billion and would be completed by the end of 2024. Today, those projections have collapsed,” the interim party Leader, David Patterson told reporters during a virtual media conference.
Patterson pointed out that the cost of the pipeline, constructed by Exxon has risen above the initial estimate while the Natural Gas Liquids (NGL) facility and 300-megawatt power plant continue to face delays. Additionally, he argued that transmission and distribution upgrades — essential for delivering the promised cheaper electricity — remain behind schedule and underfunded.
AFC Leader, David Patterson
It is important to note that the pipeline was completed since December 2024 but despite repeated requests from this newspaper for the final price tag of that component both Exxon and government continue to hide the figure from the public.
Moreover, the former Member of Parliament (MP) reminded that the Prime Minister, Brigadier (Retired) Mark Phillips made at least three commitments in the National Assembly to lay over all documents regarding the project to the House which was never done.
Patterson therefore flagged the failure of government in providing a revised, consolidated cost which analysts believe could be well over US$3B after including all other associated infrastructure.
The former minister of Public Infrastructure, who held responsibility for the energy sector, blasted the People’s Progressive Party (PPP) government for inflating the country’s projected electricity demand to justify the gas project.
He explained, “When the PPP launched the gas-to-shore project in 2022, they justified this project based on our projected peak power demand would be 480 MW by the end of 2025, the AFC immediately challenged these projections as being unrealistic.”
Patterson said that between 2020 and 2026, the highest peak demand on the Demerara-Berbice Interconnected System (DBIS) was 220MW, while the country’s current peak demand is just 200MW. He therefore noted that this was a staggering 60% below the PPP’s projection.
The party leader has called for the government to publish a full, updated cost assessment for the entire Gas‑to‑Shore project, including the cost of the power ships currently supplying the country with electricity until the power plant comes on stream.
AFC also demanded that a revised timeline be issued with clear milestones and accountability mechanisms along with an updated electricity‑pricing model reflecting the higher capital cost and disclosure of all major contracts, financing terms, and procurement arrangements with an independent system to monitor progress, spending, and technical compliance.
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