A Ministry of Natural Resources consultant stated, ‘Guyana will hold up till 2025 its biggest attempt to make the most of its energy bounty, a $1.9 billion gas-to-power project that was to suppose to start in 2023, using undeveloped gas to cut electricity costs’.
The rising oil-producing country depends on imported fuels in its electric grid and has declared to use its oil wealth for the construction of a 140-mile (225 km) pipeline, gas processing facility and up to 300 megawatt (MW) power plant.
‘The combined-cycle power plant is detained and full operation will not be feasible until the fourth quarter of 2025’, said Winston Brassington, a government consultant involved in the project
‘The project faced problems such as work delays, late deliveries of equipment and matter on the foundation at the location chosen for the project’, he said.
The project was an election-year promise to its about 800,000 residents to minimize their energy costs by 50% this year.
However, Guyana has been searching for a $646 million loan from the Export-Import Bank of the United States to finance the onshore facilities.
Presently, Exxon Mobil Corp is building the $1 billion pipeline and will be refunded by proceeds from the country’s offshore production.
‘Over 20 years Guyana will pay Exxon and its partners $55 million, at a fixed price with no adjustments, totalling $1.1 billion’, Brassington said.
‘The gas pipeline is anticipated to be ready by the end of this year’, Exxon Guyana country chief Alistair Routledge said on Tuesday at the Guyana Energy Conference and Exposition.
However, the government hope that the power plant will start delivering 200 MW by June 30 next year, with the completion of the project and delivery of 300 MW on a combined cycle by the end of 2025, Brassington said.
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