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Incomplete Wales gas project costing Guyanese $126M daily – AFC
…demands updated price tag including power ship expense
(Kaieteur News) – The incomplete Gas-to-Energy (GTE) project, which was expected to slash electricity cost to consumers by 50% since 2024 is yet to be completed, costing Guyana a whopping $126 million daily.
This was highlighted by interim Leader of the Alliance For Change (AFC), David Patterson on Thursday during a virtual news conference.
AFC interim Leader, David Patterson
In opening remarks, Patterson, the former Minister of Public Infrastructure who held responsibility for power generation, blasted the government for its failed management of the Wales gas project. The mega initiative was priced at around US$1.7 billion with the pipeline pegged at US$1 billion and the power plant and Natural Gas Liquids (NGL) facility costing another US$759 million.
It is important to note that the project also includes consultancy, supervision and transmission and distribution costs, along with other related expenses for arbitration, legal fees, land acquisition, site preparation and others. Stakeholders believe that the price tag could exceed US$3 billion but Patterson now contends that the cost to rent two power ships must also be taken into consideration.
He said, “adding to this already inflated project cost is the government’s decision to hire two power ships to compensate for delays in the gas‑to‑shore project. These ships come with high rental fees, fuel costs, maintenance and operational charges currently costing G$187 million per day.”
In a telephone interview with Kaieteur News, Patterson listed the expenses related to the powerships currently being rented by the government.
He explained that in addition to the daily rental fee of $48.8 million for the two barges, Guyana is also saddled with a daily fuel cost of $72.6 million and $4.2 million daily for transportation expenses. As such, he pointed out that Guyana is paying close to $126 million daily to generate power at the ships.
Patterson argued that these costs were never included in the original price of the Wales project yet they fall directly on the backs of taxpayers.
“The hiring of these ships is a direct consequence of the project’s failure to meet its promised timelines-and must be added to the true cost of the gas‑to‑shore initiative,” the former member of parliament noted.
The AFC has therefore demanded that the government provide the public with a full, updated cost assessment for the entire GTE project, including the cost of the power ships along with a revised timeline with clear milestones and accountability mechanisms.
The party has also called for an updated electricity‑pricing model reflecting the higher capital cost, disclosure of all major contracts and the establishment of an independent oversight structure to monitor progress, spending, and technical compliance on the project.
To date, the Wales project has missed at least three deadlines. It was initially touted for completion in 2024 but this was pushed back to 2025 and then mid-2026 which has been further delayed to the end of this year.
Although the project is expected to start up in the last quarter of 2026, government has said it will not generate electricity at full capacity until mid-2027.
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