GEORGETOWN, Guyana, CMC—In defending the country’s gas-to-energy project, Vice President Bharrat Jagdeo has insisted that the United States Export-Import Bank of the United States (EXIM Bank) would not have approved a US$526 million loan for the project if it was not feasible.
He said the approval followed an independent, technical, and environmental feasibility study. According to Jagdeo, before approving the loan, EXIM Bank conducted a thorough review to determine the venture’s viability.
“This loan went to the United States Congress, and it would have been blocked by Congress if we hadn’t had adequate answers,” he said.
On Thursday, President Irfaan Ali was notified of the approval by President and Chair of the EXIM Bank, Reta Jo Lewis.
“For those people who have been opposed to the project and said it’s a fossil fuel project, I just want to draw their attention to what the press release from EXIM Bank pointed out,” Jagdeo said, noting that it will reduce 460,000 tonnes of carbon emission annually, equivalent to the emissions from approximately 1 million barrels of oil per year.
In addition, the government will save approximately $100 million annually on fuel costs, while electricity costs will be slashed by 50 percent, leading to an annual savings of $250 million.
The vice president further explained: “It impacts the country’s balance of payments and the pockets of Guyanese companies and individuals.”
He added that the project would substantially benefit Guyanese citizens, with strong support from the US Government.
Jagdeo expressed satisfaction with the loan approval, clarifying that the financial resources will only fund 25 percent of the project. Approximately $2 billion is required to construct the facility, and the government is spending its resources to finance the rest of the project, including through a partnership with ExxonMobil.
The project involves building an integrated gas processing facility in Wales, West Bank Demerara, in Region Three. This facility will allow natural gas to be transported offshore Stabroek Block’s Liza oilfield.
When completed, approximately 300MW of power will be added to the grid, expanding the electricity supply, cutting Guyana’s footprint per kilowatt hour, and reducing energy costs by a massive 50 percent.
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