$2B Gas-to-Energy Project Delayed to 2026 – Gov’t Reviews Turkish Floating Power Proposal
GEORGETOWN, GUYANA – The much-anticipated US$2 billion Gas-to-Energy project slated for Wales on the West Bank of Demerara is now officially delayed until 2026. In the interim, the Government of Guyana has received a proposal from Turkish energy firm Karpowership to install a floating power plant to generate 300 megawatts of electricity using natural gas from the offshore Stabroek Block.
The development was confirmed by Vice President Bharrat Jagdeo, General Secretary of the People’s Progressive Party Civic (PPP/C), during a press conference on Thursday.
If approved, Jagdeo explained that the proposal could help cut daily fuel costs by as much as US$1 million, replacing expensive heavy fuel oil with more cost-effective and cleaner natural gas.
“If we could generate 300 megawatts of power from a barge until the power plant is ready, that would save us about a million US dollars per day,” said Jagdeo.
However, Jagdeo cautioned that critical transmission infrastructure must first be in place to distribute and absorb the 300MW capacity. Without that, the proposal remains unviable. He noted that no decision has yet been made, as the proposal is currently under review by the Office of the Prime Minister.
“Right now, they’re studying one issue — if they generate 300MW using our gas, we would have to be able to transmit and use all of it. Otherwise, we’d be paying for capacity we can’t use,” he stated.
Jagdeo emphasized that the Turkish firm claims it can have the floating power plant operational within 90 days of approval, provided the logistics and infrastructure are aligned.
The Vice President acknowledged the proposal’s short-term appeal but stressed the importance of a comprehensive examination before proceeding. This includes reviewing delivery mechanisms for the gas, infrastructure readiness, and contract terms—especially if Guyana must pay for unused capacity.
Background: The Wales Gas-to-Energy Project
The Wales Gas-to-Energy Project, touted as Guyana’s most transformative energy venture, is expected to reduce electricity costs, curb emissions, and catalyze industrial development. The delay to 2026 means the government must seek interim solutions to address rising energy demands and blackouts.
