حفلة 2024

Guyana gas power plant faces delays

Guyana undergoes setbacks in utilising its natural gas reserves for a power plant, potentially costing the nation $1 billion this year due to delays, Reuters reported on Monday.

The $1.9 billion gas-to-power project, aimed at leveraging Guyana’s energy wealth, is entangled in legal disputes and may exceed budget estimates. Construction delays have pushed the 300-megawatt power plant’s completion to the fourth quarter of 2025, affecting revenue prospects.

Exxon Mobil, responsible for Guyana’s oil and gas operations, is constructing a 140-mile gas pipeline from its Stabroek block to supply the project onshore. Despite Exxon’s pipeline progress, delays in government-managed works hinder connection to onshore facilities.

The Stabroek block, where Guyana’s initial oil discovery occurred in 2015, currently yields crude. The power plant will utilise associated gas, enhancing the country’s energy landscape. However, pipeline completion requires a temporary halt in oil production, potentially deferring revenue by over $1 billion.

Concerns over project delays persist, impacting Guyana’s efforts to reduce power costs and fulfill electoral promises. Operational uncertainties surround the project’s management and gas sales agreements. Legal disputes and resident complaints further complicate the situation, questioning project transparency.

Government officials reassure adherence to schedules and budgets, yet uncertainties remain. Despite challenges, there’s optimism that the project will eventually materialise, albeit with delays.

Citizens like Wally David express hope for eventual completion, amidst frustrations over governmental delays in other infrastructure projects.

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