The 300 MW Wales Gas-to-Energy project, Guyana’s largest infrastructure initiative to date, is advancing, with Prime Minister Brigadier (Ret’d) Mark Phillips saying the contractor has made significant progress in recent months.
He noted the company’s commitment to delivering first power to 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,” Phillips said.
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 are expected to provide financial relief for households while improving industrial and commercial competitiveness across the economy.
Underpinning this accelerated momentum is the resolution of all outstanding contractual matters to ensure construction advances without delay. The Government of Guyana and Lindsayca Guyana Inc. have resolved two matters decided by the Dispute Avoidance/Adjudication Board (DAAB) in January 2025 relating to soil stabilisation works at the Wales site and delay-related provisions.
The agreement removes the need for further proceedings such as arbitration and ensures construction continues under a fully aligned framework.
The settlement reflects the realities of constructing Guyana’s most ambitious infrastructure project, with both parties forgoing their respective rights to historical liquidated damages capped at 10 per cent of the contract price.
Importantly, the overall economics of the GtE project remain on track. While the settlement represents a 12.8 per cent increase over the original contract sum of US$759 million, the Government’s total expenditure for the wider project — including the 300 MW power plant, Natural Gas Liquids facility, transmission works, substations, 230 kV and 69 kV lines, and the new National Control Centre — remains within the 10 per cent contingency of its US$1 billion budget.
The GtE plant, the transmission and substation project being undertaken by KPIL, the new National Control Centre at Goedverwagting and all other related costs funded by the Government of Guyana were budgeted at US$1 billion based on the published contract price. The overall cost is not expected to exceed US$1.1 billion, including the 10 per cent contingency.
The government said power delivery to the national grid through Guyana Power and Light Inc. remains on track to reduce consumer electricity tariffs by 50 per cent, bringing long-term financial relief to households and businesses.
Substantial progress has also been recorded at the project site, with stringent milestones established following the agreement with Lindsayca Guyana Inc. The contractor has committed to bringing the first power turbine online by the end of 2026, followed by full commissioning of all gas turbines in the first quarter of 2027 and completion of combined-cycle operations by June 2027. Failure to meet these milestones would allow the Government to reinstate liquidated damages against the contractor.
The project is also expected to generate significant employment opportunities, with the workforce projected to rise to 1,100 in the second quarter of 2026 and peak between 1,400 and 1,600 workers during the height of construction.
The Government said local hiring would be prioritised throughout the development and operational phases.
Beyond the construction site, the project is expected to create wider economic opportunities across transportation, logistics, construction supply and other supporting industries. Businesses and entrepreneurs in Region Three and across Guyana are expected to benefit from the expanding activity.
The government said the GtE project is not simply about a pipeline and power generation, but about building the foundation for a diversified, production-driven economy. The Wales Development Zone is emerging as one of the country’s most significant industrial hubs.
The integration of complementary facilities within the zone — including a proposed ammonia and urea plant, a gas bottling and logistics facility to deliver affordable LPG to households, and a marine storage and offloading facility for natural gas liquids — is expected to create thousands of jobs, reduce operating costs and boost competitiveness across multiple sectors.
The government said these industrial projects, powered by affordable gas-generated electricity, would support the agriculture sector, reduce dependence on imported fertilisers and fuel products, and create long-term, skills-based employment opportunities.
The project represents a major step towards industrialisation and advancing Guyana’s energy security agenda.
Prime Minister Brigadier (Ret’d) Mark Phillips
