(DPI) More benefits will be reaped from the booming oil and gas sector as the Gas-to-Energy Project is well underway at Wales, West Bank Demerara.
This project is in keeping with the government’s commitment of ensuring that electricity costs are cut by 50 per cent in the near future. The administration’s manifesto promise featured a dedication to embracing innovative renewable energy technologies and providing incentives to reduce dependency on fossil fuels.
“The evaluation has been completed for the consultancy group to manage the project and a contract has been awarded by the Cabinet,” Vice President Bharrat Jagdeo said Thursday, during his press conference.
The vice president also noted that tenders have been submitted by the Engineering, Procurement and Construction (EPC) to build the power plant and the Natural Gas Liquids (NGL) facility, stating that, “We have hired two international firms; Stantec from Canada, and Worley from the United Kingdom, to help us to evaluate the technical aspects of the bid,”
He stated that the hiring of the two firms was to facilitate a comparison following their evaluations.
“We have the evaluation reports; we have now named our evaluation team so they have the benefit of those reports. They are working now through the evaluation process and hopefully within a week or two we will then get a recommendation which will go to the cabinet for approval,” he disclosed.
Additionally, the Vice President noted that the government may have to resort to imposing compulsory measures on landowners from Region Three to facilitate the advancement of the project.
The VP said, as soon as this weekend, agreements will be signed with a number of landowners who will receive their compensation shortly.
The Gas-to-Energy project, which is expected to commence by late 2024, will cut electricity costs by more than half. This is an attractive undertaking, as Guyana’s high electricity production cost was seen as a deterrent to investment prospects.
The project will see Guyana transitioning to a cheaper and more sustainable natural gas reserve. A 200km pipeline will transport gas from the Liza Phase One and Liza Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels in the Stabroek Block to the Natural Gas power plant that is being constructed at Wales.
