Guyana Moves to Arbitration in Dispute with Lindsayca/CH4 Over EPC Contract

The Government of Guyana (GOG) has decided to proceed to arbitration with Lindsayca/CH4 (LNDCH4) following ongoing disputes under the Engineering, Procurement, and Construction (EPC) contract related to a critical energy project.

The decision comes after the Dispute Avoidance and Adjudication Board (DAAB) issued formal rulings on January 31, 2025, in response to the disagreements between the two parties. Both the government and the contractor were given a 28-day period to decide whether to move forward with arbitration. By February 27, both sides served Notices of Dissatisfaction, indicating their intention to initiate arbitration proceedings.

The arbitration will be administered by the International Chamber of Commerce (ICC), with the proceedings taking place in Washington, D.C. As per the rules of the DAAB, all decisions in the matter remain confidential.

Despite the ongoing legal issues, both the Government of Guyana and LNDCH4 have expressed their commitment to the successful completion of the strategic power plant project. The project holds significant importance for Guyana’s economy, particularly in reducing electricity generation costs. Upon completion, it is expected that the project will help Guyana Power and Light Inc. (GPL) reduce electricity tariffs by up to 50%, which will have a major positive impact on production costs and contribute to broader economic growth.

On-site activities have resumed, with LNDCH4 continuing preparations for foundation work and construction of a cement batching plant. The delivery of steel for foundation work has been completed, and a man-camp is being established to house the workforce. Over 170 workers are currently mobilized on the project site.

ExxonMobil Guyana Limited (EMGL) has already completed the construction of the necessary gas pipeline, while work on the transmission lines and substations required for integration of the project is well underway. These components are expected to be completed by mid-year.

Despite the dispute and impending arbitration, both parties are focused on expediting the power plant and natural gas liquids (NGL) plant’s development, with the goal of relocating the gas and steam turbines, which have already arrived in Guyana, to the Wales site on schedule.

This arbitration marks a significant development in the ongoing efforts to address Guyana’s energy needs, with the project’s timely completion remaining a priority for both the government and contractor.