Guyana’s government has approved an investment of $51.2bn to bolster its gas-to-energy (GtE) project as part of the country’s key budgetary allocations of $141.45bn.
The GtE project, which features a 300MW combined-cycle power plant and a natural gas liquid (NGL) facility, seeks to harness offshore gas resources to expand electricity production.
The Office of the Prime Minister has confirmed that $88bn will be dedicated to bolstering energy infrastructure, with key investments in natural gas and renewable energy projects.
The government has emphasised that the GtE initiative is critical for lowering power costs, reducing reliance on imported fuel, and increasing national energy security.
Additionally, $36.2bn has been set aside for the construction of a natural gas power plant and an NGL facility.
The state-owned Guyana Power and Light (GPL) will receive $18bn to strengthen electricity distribution networks, while over $1bn will be allocated for consultancy services to support ongoing energy projects.
A further $18bn has been designated to manage fuel price volatility, ensuring stable electricity rates for consumers.
Currently under development, the GtE project will transport natural gas from offshore oil fields in the Stabroek Block to onshore processing facilities in Wales, West Bank Demerara.
The project includes a 225km pipeline being constructed by an ExxonMobil-led consortium, which will supply up to 130 million standard cubic feet of gas per day.
ExxonMobil has partnered with contractors including Subsea7, Van Oord, TechnipFMC, SICIM, and GAICO for pipeline installation, while CH4 Lindsayca is overseeing the development of the combined-cycle power plant and NGL plant.
Despite initial timelines targeting first gas in 2024, the project has experienced delays due to late equipment deliveries and contractual disputes.
The updated estimate now places the startup in Q4 2025, with total costs rising from $1.7bn to approximately $1.9bn.
To support the financing of onshore infrastructure, the Guyanese government has applied for a $660m loan from the US Export-Import Bank.
The government has also indicated that a second phase of the gas-to-energy project is under consideration, which would further expand power generation capacity and support industrial development.
Guyanese President Mohamed Irfaan Ali previously stated that plans for an additional gas-to-shore initiative are being evaluated to complement the ongoing development in Wales.
In November 2024, Guyana secured preliminary approval from the US Export-Import Bank for a loan guarantee exceeding $500m to support the natural-gas-fired power project and gas processing facility.
