From Early Studies to Urgent Push: The Full History of Guyana’s Gas-to-Energy Project

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Guyana’s ambitious gas-to-energy project, a cornerstone of the government’s strategy to slash electricity costs and secure the nation’s energy future, is in a critical phase of accelerated development. Following a series of delays, contractors are now working 24/7 shifts to meet the revised mid-2026 completion date [1, 2]. But the project’s current urgency is the latest chapter in a complex story that began not in 2021, but years earlier, with initial studies and site selection debates that paint a fuller picture of its evolution.

The journey to the Wales Development Zone began offshore, deep beneath the Atlantic. In May 2015, ExxonMobil announced its landmark Liza-1 oil discovery in the vast Stabroek Block, a 6.6-million-acre expanse that would soon prove to be one of the world’s most significant oil and gas finds [6, 7]. This discovery, the first of over 50 to date, unlocked a recoverable resource base now estimated at over 11 billion barrels of oil equivalent and catalyzed an unprecedented economic boom for Guyana [8]. As oil production began in December 2019, the associated natural gas, previously flared or reinjected, presented a monumental opportunity to address one of Guyana’s most persistent domestic challenges: expensive and unreliable electricity [7].

As early as 2017, the government began formally exploring this opportunity. A desk study commissioned in April 2017 confirmed the feasibility of bringing 30-50 million cubic feet of natural gas per day to shore, enough to supply nearly 70% of the nation’s energy demand. This led to a comprehensive site selection process, with a working group comprising various ministries and agencies initially identifying ten potential state-owned land parcels.

The primary focus was on locations along the East Coast of Demerara, with sites like Woodlands and Clonbrook emerging as front-runners due to their favorable characteristics. Interestingly, the now-selected West Bank Demerara location was not part of the original consideration. It was only in October 2017 that a Ministry of Finance representative on the working group proposed a site at Vreed-en-Hoop. Subsequent pre-screening and field assessments conducted through late 2017 and early 2018, however, concluded that the East Coast Demerara locations, particularly Woodlands, offered fewer constraints and lower costs compared to Vreed-en-Hoop.

Despite this, the project was put on hold in March 2018, when the Ministry of Public Infrastructure was instructed to cease all work pending the establishment of the new Department of Energy, to which all oil and gas matters were transferred in August 2018. Had the project proceeded on its original 2018 timeline, which included 18-24 months of further in-depth studies, it was anticipated to have been completed by late 2021 or early 2022—representing a potential four-to-five-year advancement over the current schedule.

The project was revived in 2021 under the new PPP/C administration, and this time, the focus shifted decisively to the West Bank of Demerara. Vice President Bharrat Jagdeo explained that the government selected Wales based on analyses inherited from the previous administration, determining its suitability against flooding risks, the high population density of other sites, and its substantial expansion potential for an industrial zone [12, 13]. The former Wales Sugar Estate site, shuttered in 2016, offered a large, contiguous land mass where industrial facilities could be located away from residential areas—a key consideration for environmental safety [11].

This new direction culminated in the December 2022 signing of a US$759 million contract with a consortium of the Texas-based Lindsayca and Puerto Rico-based CH4 Systems to engineer and construct the 300 MW combined-cycle power plant and an associated Natural Gas Liquids (NGL) facility at Wales [10]. However, the project soon encountered significant soil challenges. After construction began, geotechnical analysis revealed that the Wales site had unstable coastal clay with a rare sand mixture—what contractors described as land “not fit for construction” that required extensive stabilization before the heavy gas processing equipment could be safely installed [3].

The stabilization work required 1.65 million cubic meters of sand, 160,000 cubic meters of loam, and 25,000 cubic meters of crusher run, using cutting-edge technology from the world-renowned firm Fugro [14]. This essential preparatory work, which took 14 months and cost over US$100 million, became a key factor in the CH4 partnership dissolving in 2025 following disputes over the additional costs, leaving Lindsayca to move forward as the sole main contractor [3, 11]. The dissolution is currently subject to arbitration proceedings before the Washington DC-based International Chamber of Commerce.

Despite these setbacks, the project is now advancing with renewed determination. As of mid-October 2025, the overall project was reported to be 68.3% complete, with engineering at 89% and procurement at over 90% [3]. The offshore pipeline component, managed by ExxonMobil, is complete and ready to deliver gas [1]. Onshore, a 24/7 work schedule is in effect, and contractors have committed to extended hours to meet the revised mid-2026 deadline [1, 2].

The strategic importance of this project cannot be overstated. Guyana currently grapples with electricity costs approaching US$0.32 per kilowatt-hour (kWh), among the highest in the region, and relies on expensive, temporary powerships to meet demand [5]. The gas-to-energy project is projected to slash that cost to between US$0.08 and US$0.10 per kWh, providing an estimated US$200 million in annual savings and unlocking vast potential for industrial and manufacturing growth [3, 5].

From early studies favoring a different location to a multi-year pause and a challenging restart marked by unforeseen soil complications, the gas-to-energy project’s history is one of shifting priorities and persistent obstacles. Now, as construction accelerates at Wales, the government and its partners are in a determined race against time to overcome past delays and deliver on a promise that holds the key to a new era of economic prosperity and energy security for the nation.

References

[1] News Room Guyana. (2025, December 8). Work hours extended to keep flagship gas-to-energy project on track for 2026. https://newsroom.gy/2025/12/08/work-hours-extended-to-keep-flagship-gas-to-energy-project-on-track-for-2026/

[2] Department of Public Information. (2025, October 11). 24/7 work schedule now in effect for Wales Gas-to-Energy project. https://dpi.gov.gy/24-7-work-schedule-now-in-effect-for-wales-gas-to-energy-project/

[3] Demerara Waves. (2025, October 15). Wales gas-to-energy power plant 68 percent complete after 14-month delay. https://demerarawaves.com/2025/10/15/wales-gas-to-energy-power-plant-is-68-3-percent-complete-after-14-month-delay-due-to-soil-stabilisation/

[4] Guyana Business Journal. (2023, November 26). Guyana’s Gas to Energy Project and its Implications. https://guyanabusinessjournal.com/2023/11/guyana-gas-to-power-implications/

[5] Guyana Business Journal. (2025, April 27). Guyana’s Energy Transition. https://guyanabusinessjournal.com/2025/04/guyanas-energy-transition/

[6] ExxonMobil. (n.d.). Guyana project overview. https://corporate.exxonmobil.com/locations/guyana/operations/guyana-project-overview

[7] Offshore Energy. (2019, December 23). ExxonMobil makes history in Guyana as Liza Destiny FPSO produces first oil. https://www.offshore-energy.biz/exxonmobil-makes-history-in-guyana-as-liza-destiny-fpso-produces-first-oil/

[8] Brazil Energy Insight. (2025, November 25). Stabroek Block reaches 51 discoveries as Liza’s breakthrough continues to shape Guyana’s oil future. https://brazilenergyinsight.com/2025/11/25/stabroek-block-reaches-51-discoveries-as-lizas-breakthrough-continues-to-shape-guyanas-oil-future/

[9]

[10] Kaieteur News. (2022, December 14). Govt. signs agreement to build US$759M Wales gas plant. https://kaieteurnewsonline.com/2022/12/14/govt-signs-agreement-to-build-us759m-wales-gas-plant/

[11] Stabroek News. (2025, July 2). Partners in gas to energy project to split up – sources. https://www.stabroeknews.com/2025/07/02/news/guyana/partners-in-gas-to-energy-project-to-split-up-sources/

[12] Demerara Waves. (2021, February 10). Jagdeo justifies Wales location for gas-to-energy project, associated industries. https://demerarawaves.com/2021/02/09/jagdeo-justifies-wales-location-for-gas-to-energy-project-associated-industries/

[13] Stabroek News. (2021, May 9). Environment impact for gas-to-shore project still to be done. https://www.stabroeknews.com/2021/05/09/news/guyana/environment-impact-for-gas-to-shore-project-still-to-be-done/

[14] Stabroek News. (2024, September 22). Stabilising Wales soil for gas project took huge amount of sand, loan. https://www.stabroeknews.com/2024/09/22/news/guyana/stabilising-wales-soil-for-gas-project-took-huge-amount-of-sand-loan/

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Editor’s Note

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