Gas-to-Energy Project – Dispute Resolution Process

As has been widely reported in the media, certain matters of dispute in connection with  the Gas-to-Energy (GTE) 300 MW Integrated Plant between the Government of Guyana (GOG) and the Contractor, Lindsayca/CH4, were referred to the Dispute Avoidance and  Adjudication Board (DAAB) on 19 September 2024.  

On 31 January 2025, the DAAB issued their ruling on the matters referred to it. In  relation to this ruling, the parties to the dispute resolution process are bound by certain  rules of confidentiality.  

Following the DAAB ruling, the Parties have 28 days to determine if they wish to refer  the decisions, or any part thereof, to Arbitration, which would be the next stage in the  dispute resolution process.  

It would be recalled that certain aspects of the project were executed on the GOG’s  behalf by Exxon Mobil. The GOG will, therefore, in the next few weeks, in consultation  with its partners, including Exxon/Mobil, as well as relevant legal and technical  advisors, determine the best course forward for GOG.  

The GOG’s priority continues to be to ensure that the project is completed in the  shortest possible time and in keeping with contractual specifications, with a view to  bringing the power plant and the NGL plant into operation and delivering the associated  benefits to the Guyanese People as soon as possible.  

When completed, the project’s benefits will include a doubling of the country’s  electricity generating capacity to meet growing demand and a reduction in the cost of  generation, thereby enabling electricity prices paid by consumers to be cut by 50 per  cent. This will, in turn, catalyse rapid expansion in industrial activity, and immediately  improve the competitiveness of the manufacturing sector and all other productive  sectors that are energy intensive, bringing vast employment and entrepreneurial  opportunities for Guyanese nationals. 

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Additionally, the completion of the project will facilitate other benefits such as a  reduction in the cost of LPG cooking gas to households and businesses, and the  realisation of domestic self-sufficiency with significant surplus for the export market.  Consequently, the project will not only generate significant foreign currency savings for  our country as a result of reduced imports, but also generate additional export revenue,  bringing with it the attendant macroeconomic benefits of a stronger balance of  payments position, which will redound to the benefit of the Guyanese people.