Govt affirms 2026 first power target as works progress on GtE project

See full statement from the Office of the Prime Minister:

The 300 MW Wales Gas to Energy project, Guyana’s largest infrastructure initiative to date, is advancing. Prime Minister, Brigadier (Ret’d), the Honourable Mark Phillips expressed the view that in recent months the contractor has advance works.

He noted the company’s commitment to deliver first power in the national grid by the end of 2026.

“The Wales Gas to Energy project represents a defining moment for Guyana and for the energy future of every citizen of this nation. We are satisfied with the progress being made and remain fully committed to ensuring that Guyanese households and businesses benefit. This project will cut electricity costs in half, and we are firmly on track to deliver on that promise.”

Through Guyana’s investment in the 300 MW Gas to Energy (GtE) project, now under accelerated construction, the adaptability of natural gas will be harnessed to transform the power sector. The project aims to reduce electricity costs by 50 per cent and support domestic production of liquefied petroleum gas (LPG) for cleaner household cooking. Beyond immediate energy benefits, the GtE project is expected to enhance industrial competitiveness and strengthen the national energy mix.

This is complemented by renewable energy ambitions to ensure electricity remains affordable, reliable, and sustainable for all citizens.

As the largest investment in electricity generation in Guyana’s history, the Wales GtE project is expected to double national generation capacity, improve reliability, reduce fuel imports, stabilise energy costs, and support a 50 per cent reduction in consumer electricity tariffs. Lower energy costs will provide financial relief for households while improving industrial and commercial competitiveness across the economy.

Underpinning this accelerated momentum is the decisive resolution of all outstanding contractual matters to ensure that construction advances without delay, the Government and Lindsayca Guyana Inc. have reached a resolution on two matters decided by the Dispute Avoidance/ Adjudication Board (DAAB) in January of 2025 relating to soil stabilization works required at the Wales site and to delay-related provisions. This amicable resolution removes the need for further proceedings such as arbitration, and ensures that construction continues under a fully aligned, forward-looking framework.

The resolution of costs associated with these matters reflects the realities of building Guyana’s most ambitious infrastructure project and the interest of expeditious project delivery with both parties forgoing the respective rights to historical liquidated damages, capped at 10 percent of the Contract Price.

Importantly, the overall economics of the GtE project remain firmly on track. While the settlement represents a 12.8 percent increase over the original contract sum of $759 M, the Government’s total expenditure for the wider project, comprising the 300 MW power plant, the Natural Gas Liquids facility, transmission works, substations, 230 kV and 69 kV lines, and the new National Control Centre, remains within the a 10 percent contingency of its budget of US$1 B.

As such, the GtE plant, the Transmission/Substation project undertaken by KPIL, the new National Control Center (NCC) at Goedverwagting, and all other project related costs funded by GOG, were all budgeted at $1 B based on the published contract price. The overall cost of the is not expected to exceed US$$1.1 B, including the 10% contingency.

This means that delivery of power to the national grid through Guyana Power and Light Inc. remains on track to reduce consumer electricity tariffs by 50 percent, placing meaningful and lasting financial relief within reach of Guyanese households and businesses.

Meanwhile, substantial progress has also been recorded in works at the site thus far, with stringent milestones set moving forward following the agreement with LindsaycaGuyana Inc., committed to bringing the first power turbine online by the end of 2026 to be followed by all gas turbines fully commissioned by the first quarter of 2027 and the Combined Cycle operation to be completed by June 2027. Failure to meet these milestones will allow the Government to re-instate liquidated damages against the Contractor. This arrangement reflects prudent project management practice, ensuring that the resources necessary to complete construction are in place.

The project is also generating significant employment opportunities, with the workforce expected to rise to 1,100 in the second quarter of 2026 and peak between 1,400 and 1,600 workers as construction reaches its most intensive stage.

The Government remains committed to ensuring that employment benefits are felt broadly and equitably, with local hiring prioritised at every stage of development and subsequent operation.

Beyond the construction site, the project is creating a widening circle of economic opportunity across the local economy. As activities continue to scale, demand is increasing across transportation, logistics, construction supply, and other supporting industries. Guyanese businesses and entrepreneurs in Region Three and nationwide are well positioned to benefit directly from this sustained and expanding activity.

The GtE project is not simply about a pipeline and power generation; it is about building the foundation for a diversified, production driven economy. The Wales Development Zone is emerging as one of the most significant centres of industrial activity in the country’s modern history.

The integration of complementary facilities within the Zone — including the proposed ammonia and urea plant, a gas bottling and logistics facility to deliver affordable LPG directly to households, and a marine storage and offloading facility for natural gas liquids — will collectively create thousands of additional jobs, reduce operational costs, and boost competitiveness across multiple sectors.

These industrial anchors, powered by affordable gas generated electricity, will support Guyana’s agriculture sector, reduce dependence on imported fertilisers and fuel products, and create durable, skills-based employment for the next generation of Guyanese workers.

The project represents a major leap toward industrialisation and the nation’s energy security agenda.