Only Western technologies will be used for gas-to-land power plant – Demerara Waves Online News – Guyana
Updated on Saturday August 20, 2022 at 1:13 by Denis Chabrol
Vice Chairman Bharrat Jagdeo announced on Friday that bids for the estimated US$700 million gas-to-land power plant and natural gas liquids (NGL) are expected to be made by one of the two Western companies.
He said bidders should offer to use either Siemens or General Electric (GE) technologies, but he gave no reason for the government to decide to limit its preferences to those two technologies. “We have defined the technology we want to use, which is Western technology, either Siemens or Western technology from GE. This has been defined in such a way that whoever bids must use technology that we are comfortable with,” he told a press conference.
According to Jagdeo, the nine shortlisted companies must now submit bids for the NGL power plant and installation in the first week of September.
The Guyanese government’s announcement came weeks after signing a memorandum of understanding for a US$2 billion line of credit with the United States Export-Import Bank (EXIM) that would allow US companies to take advantage of infrastructure opportunities in this emerging oil and gas economy.
Ahead of the Summit of the Americas held earlier this year, the United States and the EU had expressed concern about the loss of influence in Latin America and the Caribbean to China. In recent years, Guyana has awarded multi-million dollar contracts to Chinese companies for the construction of infrastructure projects.
The Guyanese government expects the power station, which would be built in Wales, West Bank Demerara, to be completed by 2024 and the NGL station by 2025.
ExxonMobil is paying for the construction of the estimated US$1 billion pipeline from the cost of oil, and after construction it would be insured against leaks or ruptures. “We don’t know the total cost of the project,” he said. Mr Jagdeo said the pipeline route was still being mapped and environmental studies being carried out.
ExxonMobil is expected to supply 50 million cubic feet of natural gas through the pipeline, which has a capacity of up to an additional 80 million cubic feet per day, Jagdeo said.
He reiterated that the cost of electricity would be reduced to 4 US cents per kilowatt hour from 30 US cents, and cooking gas would be produced for free.