Latest update September 23rd, 2026 10:07 AM
U.S. EXIM ready to lend US$550M for Guyana’s second GTE project
(Kaieteur News) – The United States Export-Import Bank (US EXIM) is prepared to lend up to US$550 million to finance the second phase of Guyana’s controversial Gas-to-Energy (GTE) project at Wales, West Bank Demerara.
The financial institution previously approved a US$527 million loan to support Guyana’s first gas development project at Wales, comprising a Natural Gas Liquids (NGL) facility and a 300-megawatt gas-fired power plant.
In a brief statement on the sidelines of the 81st session of the United Nations (UN) General Assembly on Monday, released by Fueledgy, the Chairman of the US EXIM Bank, John Jovanovic said, “We are deeply committed to ensuring the GTE One is completed but the GTE Two is brought to life.”
President Irfaan Ali (left) with Chairman of the US EXIM Bank, John Jovanovic
Beyond strengthening its ties with Guyana in the energy sector, the US EXIM Bank is also eyeing partnerships in other “transformative projects” according to Jovanovic such as the deepwater port and housing initiatives in the country.
Meanwhile, President Irfaan Ali noted, “There are some important transformative projects for us at home and the US EXIM today has once again demonstrated its full commitment to this transformative agenda and being part of some of our historic projects ahead of us.”
According to a US official, the Bank is willing to lend up to US$550M to finance the second phase of the Wales gas project. Kaieteur News understands that the institution has formally submitted a Letter of Interest to fund part of, or the entire project.
According to bid documents, 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+), utilizing 70 MMCFD of “rich gas”.
It states that government will be securing from ExxonMobil Guyana Limited (EMGL), 70 million cubic feet (MMCFD) of rich gas which it intends to use at Phase Two.
The Office of the Prime Minister said, “Phase Two will be located on no more than 100 acres of land, immediately adjacent to the existing 300 MW integrated facility. The project will be owned and financed 100% by the private sector, under a project finance structure, which will design and construct the integrated facilities, to a standard and specification that meets and or exceeds that of Phase I of the GTE.”
The RFP issued by government also indicated that investors will recover their investment from the sale of electricity via a 20-year term PPA at a price per KWH and monetization of the NGLs. At the end of the PPA term, the facilities will revert to the GOG at no cost.
Additionally, it said Phase Two of the GTE project will enjoy the same fiscal incentives as Phase One. Phase One of the GTE project was awarded to CH4-Lindsayca back in December 2022. The project was pegged at US$759M and was slated to be completed by the end of 2024. The deadline to “first power” has since been extended by two years with just 57 MW likely to be delivered to the national grid by the end of 2026.
Extensive research by this newspaper uncovered that Lindsayca was drowning in financial losses when it was awarded the US-multimillion dollar deal. Sources close to government told this newspaper that the troubled contractor has been shortlisted for Phase Two of the GTE project. The project at Wales continues to drain Guyanese taxpayers with mounting cost overruns, Dispute Avoidance and Adjudication Board (DAAB) payouts, and agonising delays.
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