Guyanese know nothing about the gas to shore project – Ramon Gaskin

By Mark DaCosta- Guyanese economist Ramon Gaskin has written to the Government of Guyana requesting information about the gas to shore project announced by the People’s Progressive Party (PPP) regime.

The letter is dated April 25, 2023. It is addressed to Commissioner of Information Hon. Charles Ramson SC, and copied to Vice President Bharrat Jagdeo, Minister of Natural Resources Vickram Bharrat, and Minister of Finance Ashni Singh.

Mr. Gaskin wrote the following:

On behalf of a group of Guyanese citizens, I request information on what is commonly called the Gas To Energy Project. From information in the media, the [cost of the project] is estimated to be in the vicinity of 3 billion United States dollars.

In the correspondence, the Guyanese economist requests some 20 pieces of information, including:

• Total projected cost of the project (capital and operating)
• Who are the owners and shareholders
• What is the cost to Guyana; how much of the cost is covered by loans; what are the interest rates on any loans
• Is there a feasibility study showing capacity and technical losses
• What are the proposed benefits to consumers
• Who is responsible for any environmental problems
• Are there any plans to submit the proposal to the National Assembly for consideration
• Is Exxon paying any taxes on the profits
• What is the role of the Auditor General in the project

In an exclusive interview with Village Voice News on May 30, Mr. Gaskin said that he has not received any response to his letter, which, he said, he delivered in person, to the various offices of government officials. “They can’t say that they didn’t get the letter,” Mr. Gaskin said.

During the interview, Mr. Gaskin explained some of the reasons for great concern. He said that the cost of the project – US$3 billion — is 75 percent (three quarters) of Guyana’s total national budget. The economist said, “This is by far the biggest, most expensive project ever undertaken in this country, yet, amazingly, there is no information available about it, and the PPP government is not telling Guyanese anything.”

Mr. Gaskin noted that nothing was tabled in Parliament, there was no competitive bidding, there are no known feasibility studies; “We just don’t know anything about it,” he said. “It appears that [Vice President] Jagdeo and Exxon are making a private deal with 3 billion United States dollars that may belong to Guyanese.”

The economist said that according to information from the PPP regime, the Gas To Energy Project will produce some 250 megawatts (MW) of electricity, Amalia will produce a further 150 MW, and the current [Wartsilla] system will contribute some 120 MW, for a total of about 520 MW. Mr. Gaskin said that the country has an electricity shortfall of only 40 MW, and he wonders, Where will all that extra power go; “will the government sell it – nobody knows because the administration is saying nothing at all?”

He noted, too, that the administration claims that some of the electrical power will benefit hinterland communities. “But how will the power reach hinterland communities; there is no connection between the present generating system and interior locations such as Region # 1 and 8,” he said?

The economist said that there are four different companies or entities involved in the project: Exxon is getting the gas from underground, another entity is arranging transportation of the gas to the shore, another entity is storing the gas, and selling it to Guyana Power and Light (GPL). The expert noted that, “We know absolutely nothing about any of those transactions among those entities; we don’t even know who is selling our gas to whom and at what price.”

Mr. Gaskin said that government has said that the Gas To Energy Project will reduce the cost of electricity to consumers by half. But, he said, “I don’t see how that is possible because, according to calculations, the cost of producing 1 MW of power [by the Gas To Energy Project] is 7 times higher than current production costs. “How then, will government reduce the electricity bills of consumers if the cost of producing the electricity is 7 times higher?”

Mr. Gaskin said that Guyanese deserve answers right now because, “if a project of this size fails to deliver positive results it could bring down our whole economy.”

The economist repeated, “This project is three quarters the size of our whole national budget.”

The economist said that he hopes that the PPP regime will respond to the request for information. Mr. Gaskin added, “If the government doesn’t provide answers, we are ready to go to the courts to get answers.”