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Guyana's $1.9 billion gas-to-power job postponed to 2025

Guyana will delay until 2025 its greatest effort to take advantage of its energy bounty, a. $ 1.9 billion gastopower project that was to start this year,. utilizing untapped gas to slash electricity expenses, a Ministry of. Natural Resources expert stated on Tuesday.

The rising oil producing country counts on imported fuels in. its shaky electrical grid and has actually assured to use its oil wealth. to build a 140-mile (225 km) pipeline, gas processing. center and approximately 300 megawatt (MW) power plant.

Winston Brassington, a government specialist associated with the. project, stated the combined-cycle power plant is postponed and complete. operation will not be possible until the 4th quarter of 2025.

The task suffered work hold-ups, late devices deliveries. and concerns on the structure at the area picked for the. project, he stated.

The task was an election-year promise to its about 800,000. homeowners to lower their energy costs by 50% this year.

Guyana has been looking for a $646 million loan from the. Export-Import Bank of the United States to finance the onshore. facilities.

Exxon Mobil Corp is presently building the $1. billion pipeline and will be repaid by earnings from the. nation's overseas production. Guyana will pay Exxon and its. partners $55 million over a 20-year period, at a repaired rate. without any modifications, totaling $1.1 billion, Brassington said.

The gas pipeline is anticipated to be ready by the end of this. year, Exxon Guyana nation chief Alistair Routledge stated on. Tuesday at the Guyana Energy Conference and Exposition.

However, the government expects the power plant will begin. delivering 200 MW by June 30 next year, with task completion. and delivery of 300 MW on a combined cycle by the end of 2025,. Brassington stated.

(source: Reuters)