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Guyana launches tender for power plant, natural gas liquids facility
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Guyana launches tender for power plant, natural gas liquids facility
Sep 20, 2024 9:20 AM

By Kemol King

GEORGETOWN, Sept 20 (Reuters) - Guyana on Friday issued

a request for proposals to build a gas-fired power plant and a

facility for processing natural gas liquids, projects to feed

industrial customers from its mostly untapped offshore gas

reserves.

The nation of 800,000 people relies on heavy fuel imports to

generate power and consumers face frequent outages caused by a

faulty grid and generation shortfalls.

The government has set Nov. 14 as deadline for receiving

offers for the design, finance and operation of a 250-megawatt

combined-cycle power plant that would deliver electricity to the

country's state utility through a contract for 20 to 25 years.

The tender also includes a facility that would produce some

6,000 barrels per day of natural gas liquids by utilizing some

75 million cubic feet per day of offshore gas.

The projects are meant to be private-sector owned, but the

South American country said it reserves the right to buy it out

anytime after commissioning.

The developments represent the second leg of Guyana's

gas-to-power strategy, pushed by the government to secure gas

for the country from Exxon Mobil ( XOM )-operated fields, where more

than 11 billion barrels of recoverable oil and gas have been

found.

Exxon, Hess and CNOOC control all

oil and gas output in Guyana through a consortium.

The companies are soon to complete an undersea pipeline from

their Liza Destiny and Liza Unity floating facilities to supply

gas to onshore projects.

The pipeline will bring gas to a 300MW-power plant and a

first NGL facility as part of the $1.9 billion first phase of

the gas-to-power strategy, expected to be begin generating

electricity in the fourth quarter of 2025, officials have said.

Gas from the second-phase would go to power generation and

other industries, including a proposed fertilizer plant, the

tender published by the office of the Prime Minister said.

The Exxon-group began oil production in Guyana in 2019. All

output is currently being exported.

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