Govt. negotiating with Turkish firm for another powership

Sep 20, 2026 News

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…U.S. millions needed to provide fuel monthly

(Kaieteur News) – The Government of Guyana (GoG) has reportedly commenced talks with a Turkish power company for a large vessel to provide additional electricity to the national grid, as concerns grow over the startup of the Gas-to-Energy (GTE) project by year-end, as promised by contractor Lindsayca.

Multiple sources have confirmed that the administration is preparing to bypass national procurement laws to secure a third powership, which would be the largest ever rented by the country.

The nation currently rents two vessels from Karpowership – a 36-megawatt (MW) facility docked in the Berbice River and a 60MW vessel stationed in the Demerara River.

This newspaper was reliably informed that the third powership is likely to provide 300MW of power to the grid using Heavy Fuel Oil (HFO). The vessel is likely to replace the existing two powerships leased to the GoG.

Sources told Kaieteur News that the new powership is likely to be stationed at Wales, West Bank Demerara, where the GTE contractor continues to struggle to meet the fast-approaching December deadline to provide some 57MW to the grid.

In the meantime, demand for electricity continues to grow as development in the country expands.

To meet the projected demand for electricity and prepare for any further delays to the troubled GTE project, the GoG is now forced to turn to rented power generation, which will come at a massive cost to the national purse.

It should be noted that about US$2 billion has already been invested in the power project at Wales, which is nowhere closer to delivering on the promise of cheaper and more reliable electricity.

Instead of holding those responsible accountable for these agonising delays, the administration is looking to tie the nation to yet another heavily polluting HFO powership at a time when fuel prices are skyrocketing and the country continues to rely on imports to meet the needs of domestic and commercial markets.

Based on recent Platts spot indexes placing HFO at over US$500 per metric tonne, the fuel costs alone to cover a 300MW shortfall could run into the tens of millions of US dollars monthly. This decision would directly drain the national coffers and exacerbate the high cost of living that everyday-citizens are currently battling.

Furthermore, transparency advocates and industry observers are questioning why, if emergency generation is so desperately needed, the government is not attempting to lease gas-powered generators or powerships.

Sources said, “Utilising gas-powered units would not only significantly reduce fuel expenses but also alleviate the severe strain on the local banking system that would require additional US dollars to purchase HFOs on the international market.”

Currently, businesses and families are forced to wait weeks to exchange their Guyanese dollars due to a tightly squeezed foreign currency market. Continuing to rely on expensive HFO imports only deepens this currency crisis, tying up crucial US dollars that should be circulating in the local economy.

The real scandal

Sources told this publication that the real scandal lies hidden behind the smoke of these powerships. It was explained that the push for more HFO generation is a direct attempt to cover up a frightening reality: Lindsayca’s Natural Gas Liquids (NGL) conditioning plant is severely behind schedule.

“It is simply not ready to process the 50 million standard cubic feet per day (mmscfd) of gas expected in 2026 – the very gas that could easily run a much cheaper, cleaner gas-powered ship,” a government source indicated.

Notably, the administration’s refusal to follow standard procurement procedures for this third powership raises serious red flags. If it chooses to bypass the tender board, government would be doling out hundreds of millions of US dollars without the scrutiny of a national body tasked with ensuring that the state selects the most competitive bidder based not only on price but also experience.

Guyanese deserve to know the exact details of these fuel arrangements and the supplier involved in the HFO contracts.

During a press conference, President Irfaan Ali revealed that there is currently no spinning reserve left on the grid, while a number of generators have exceeded their maintenance schedules or are approaching their maintenance timelines.

Notably, the Head-of-State did not rule out the possibility of a third powership when questioned specifically on the matter.

He said, “Whatever the situation demands now we have to have a holistic approach to this.”

Meanwhile, the Minister of Public Utilities and Aviation, Deodat Indar, did not respond to a request for comment on Saturday up to the time of this report.

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• GTE, Karpowership, LINDSAYCA, negotiating, Turkish power company

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