GEORGETOWN, Guyana, (DPI) – The government of Guyana has shortlisted and started negotiations with the German company, Siemens Energy as the potential firm to operate and manage the power plant component of the transformative gas-to-energy (GTE) project in Wales, Region Three.
The office of the prime minister, under which the project is being executed, invited requests for proposal (RFPs) in 2024, and three international companies: Siemens Energy (Germany); CH4 Systems (Puerto Rico), and Ethos Energy ((Texas, USA) expressed interests.
During his presentation at the Guyana Energy Conference and Supply Chain Expo on Wednesday, the GTE Project Lead Winston Brassington revealed that Siemens Energy has been shortlisted.
“[Siemens Energy RFP] is the most technically compliant proposal and now the contract is being negotiated,” Brassington told the audience at the Guyana Marriott Hotel in Kingston, Georgetown. He emphasised that the government is looking to contract world-class firms to operate this massive facility and finalise the agreement with Siemens within the next few months.
The government is also seeking subcontractors for the natural gas liquid (NGL) operations.
“Both of those parties are expected to be in place by the middle of the year so that there is enough of a transition between construction and operations,” the project lead stated.
Brassington stated that Guyana is setting the groundwork to becoming a major energy supplier in the Caribbean and Latin American regions even as the government moves to establish a second GTE project. He pointed out that phase one of the project focuses on stabilising electricity costs and generating export revenue via the natural gas liquid. Phase two of the project seeks to upscale private sector investment.
The initial phase of the project involves the construction of a pipeline, power plant, natural gas liquids facility and upgrades to the power distribution network.
When operational, energy costs will be slashed by 50 percent, addressing an age-old issue of high electricity costs in Guyana.
Also, with the power demand surging in the last few years, the GTE will boost generating capacity to address the issue of power outages.
The government also plans to sell cooking gas, fertiliser and other natural gas by-products to neighbouring countries to ensure Guyanese earn more from this newly found wealth.
US-based company CH4 Lindsayca is building out the integrated facility in Wales for US$759 million while Kalpataru Projects International Limited is establishing the transmission lines and substation needed to deliver electricity.
ExxonMobil Guyana has completed the construction of a pipeline that will allow natural gas to be transported from the offshore Stabroek Block’s Liza oilfield to an integrated gas processing facility in Wales.
Earlier this year, Guyana and the United States Export-Import (EXIM) Bank signed a US$527 million loan to further support the development of the GTE project.
President Dr Mohamed Irfaan Ali said this investment would result in savings for the country over US$250 million, positively impacting the injection of disposable income.
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