Patterson Criticises PPP/C Over Gas-to-Shore Project’s Cost Overruns and Site Selection Failures

Interim Leader of the Alliance For Change (AFC) and spokesperson on Oil and Gas, David Patterson, has criticised the People’s Progressive Party/Civic (PPP/C) Government for ignoring feasibility studies conducted under the 2015–2020 A Partnership for National Unity and Alliance for Change (APNU+AFC) administration regarding the Gas-to-Shore Energy Project.

Patterson, who served as Minister of Public Infrastructure under the APNU+AFC Government, had oversight of the project during its initial planning phase.

The flagship Gas-to-Shore Project at Wales, intended to bring natural gas from offshore to power a 300 MW facility, has become a focal point of national scrutiny. Initially announced in 2021 with an estimated cost of US$900 million and a promise to cut electricity prices to under 5 US cents per kWh, the project’s price tag has now reportedly ballooned to over US$2.2–2.4 billion.

While the government has already spent US$400 million from local funds and awaits financing from the U.S. Exim Bank, delays and contractor disputes have pushed back the completion timeline, possibly into 2026.

Though offshore pipeline works are progressing, onshore construction remains incomplete. Independent analysts and the political opposition have raised growing concerns over feasibility, accountability, and a lack of transparency throughout the project’s development.

“In 2020, the PPP/C Government promised to conduct studies for the Gas-to-Shore Project, but they never did,” Patterson said.

His comments come in the wake of revelations that the Government of Guyana has spent an additional US$100 million over the project’s original budget, leading to significant delays in its completion.

Speaking to Village Voice News, Patterson said the selected site at Wales was unsuitable for the type of infrastructure required. He noted that the APNU+AFC Government had commissioned five separate feasibility studies during its term in office.

“We left five studies there, and none of them recommended the Wales site,” Patterson stated. “The preliminary studies pointed to Clonbrook in the Mahaica Region Five area. ExxonMobil and everyone else agreed that it was the best location for the Gas-to-Shore Project.”

Further concerns were raised during the Guyana International Business Conference (IBC), held in Georgetown from October 15 to 17, 2024, where Lindsayca Chairman Nelson Drake revealed that liquid was discovered at the project site and warned of potential hazards stemming from poor site selection.

“The equipment we’re putting on the site is essentially a gas processing facility, which can easily become a bomb if not properly managed,” Drake said. “The Simmons turbine and the power island must be perfectly aligned.”

Originally, the PPP/C Government had pegged the cost of the Gas-to-Shore Project between US$300 million and US$800 million. According to Patterson, the cost has now ballooned to over US$2.5 billion—and the project remains incomplete.

Patterson also criticised Vice President Bharrat Jagdeo’s earlier claim that building the facility at Wales was a “no-brainer.” In a 2021 interview, Jagdeo described the project as a “no-brainer,” emphasising its potential to reduce electricity costs drastically—from approximately 30 US cents per kWh to as low as 4 US cents per kWh by switching from diesel to natural gas.

However, Patterson forecast differently stating that “I can say without contradiction that the promised delivery cost of 3 US cents per kilowatt-hour is now increasing.” According to him, “Guyanese will feel the burden of that cost. The [Wales Project] is worse than the failure of the Skeldon Sugar Factory—and ten times more expensive.”