Guyana’s government has greenlit a $51.2 billion investment as part of a larger $141.45 billion budget aimed at accelerating key infrastructure projects. The gas-to-energy (GtE) initiative will receive the largest portion—$88 billion—to enhance the nation’s power generation capacity.
Prime Minister Mark Anthony Phillips confirmed that $36.2 billion is allocated for building a natural gas power plant and a natural gas liquid (NGL) facility. Additionally, $1 billion is earmarked for project consultancy, while $18 billion is set aside to stabilize fuel costs, ensuring electricity prices remain unchanged since 2020 despite global price fluctuations. Investments will also support small hydropower projects to expand renewable energy use.
The GtE project will transport natural gas from the offshore Stabroek Block to an integrated NGL plant and a 300 MW combined-cycle power station in Wales, West Bank Demerara. The government aims to expedite construction to boost electricity supply, lower energy costs, reduce imports, and drive economic growth.
Since the discovery of oil in 2015, Guyana has become a key player in hydrocarbon exploration. Prioritizing natural gas development is central to the country’s energy strategy, with President Dr. Mohamed Irfaan Ali confirming plans to evaluate a second gas project to complement the Wales initiative.
ExxonMobil and its Stabroek Block partners—Hess Corporation and CNOOC—are collaborating with Guyana’s Natural Resources Ministry to optimize gas extraction and monetization. ExxonMobil is leading construction of a 12-inch pipeline network, investing approximately $1 billion to connect gas output from the Liza Phase 1 and 2 projects. The pipeline will transport up to 130 million standard cubic feet of gas per day, subject to regional demand.
The Guyanese government is responsible for building the onshore facilities, valued at around $759 million. Following the project’s approval in July 2022, ExxonMobil awarded contracts to Subsea7, Van Oord, and TechnipFMC for offshore pipeline installation. CH4 Lindsayca is constructing the 300 MW power plant, while SICIM and GAICO are handling onshore pipeline installation. Kalpataru Project was contracted to develop transmission lines and substations.
Due to project delays, the estimated cost increased from $1.7 billion to $1.9 billion, shifting the first gas delivery from 2024 to 2025. The government has applied for a $660 million loan from the U.S. Exim Bank to support the initiative.
ExxonMobil, which has been developing multiple offshore projects—including Liza, Payara, Yellowtail, Uaru, and Whiptail—plans to advance its seventh oil development, Hammerhead, by 2029. With an estimated 11 billion barrels of oil equivalent in Guyana’s reserves, the company is considering deploying up to 10 floating production, storage, and offloading (FPSO) units by 2027.
Meanwhile, Hess Corporation’s ongoing merger with Chevron could introduce another major U.S. energy player into Guyana’s rapidly expanding oil and gas sector. If arbitration proceedings conclude favorably, Chevron may enter the Stabroek Block partnership by late 2025.