By Saskia Warrick – December 27, 2024
Guyana’s energy sector is poised for a significant transformation with the approval of a $526 million loan from the US Export-Import Bank to support the country’s ambitious Gas-to-Energy (GTE) project.
This initiative aims to boost energy security, cut emissions, and enhance the nation’s electricity capacity.
The project will double Guyana’s installed electricity capacity and facilitate its transition to cleaner, more reliable energy.
Key infrastructure, including a natural gas separation plant, a 300 MW combined cycle gas turbine power plant, and services tied to the gas supply pipeline near Georgetown, will now begin construction.
PPP General Secretary and Vice President Dr. Bharrat Jagdeo expressed confidence in the project’s success, criticizing opposition claims that the loan would not be approved.
He clarified that the $526 million loan represents just 25% of the project’s total $2 billion cost, with the remainder being financed through local resources and ExxonMobil Guyana.
Dr. Jagdeo emphasized that the Gas-to-Energy project supports Guyana’s transition to greener energy by significantly lowering emissions and reducing dependence on fossil fuels, such as fuel oil, which is one of the highest polluting energy sources.
The project will also enable the decommissioning of inefficient local generators.
In addition to its environmental benefits, the project is expected to spur economic growth by improving energy infrastructure, which is essential for Guyana’s continued development.