The Guyana government is working closely with a contractor to ensure the Gas-to-Energy project is completed for start-up in mid-2026, making cheaper, lower-emission power available for the country. Let’s examine the various aspects of this project network, so you can stay in the know.
What is the Gas-to-Energy project?
The Gas-to-Energy project is purposed to establish infrastructure so natural gas can be transported from the ExxonMobil-operated Stabroek Block to an integrated gas processing facility at Wales, on the West Bank of Demerara. The project, which has two phases, will deliver natural gas liquids (NGL) and dry gas to the government of Guyana.
Which hydrocarbon fields will the gas come from?
The Liza field is the area in which ExxonMobil made the first commercial discovery of crude oil in 2015, and where the gas for phase one of the project will come from. Liza has more oil than gas, but enough gas to help meet Guyana’s electricity and other needs for many years. ExxonMobil is already producing and exporting oil from Liza, through the Liza phases one and two projects, and is currently reinjecting the gas. But when the first phase of infrastructure is complete, the company is expected to transport Liza gas to shore.
As for phase two, the gas will come from the Hammerhead project when it starts production in 2029.
What infrastructure is needed for the Gas-to-Energy project?
A subsea pipeline has been installed on the seafloor to transport natural gas from the Liza field to an onshore pipeline at the West Coast of the Demerara river. The onshore pipeline will deliver the gas to an integrated facility at Wales, on the West Bank of Demerara. At this facility, a natural gas liquids (NGL) processing plant will treat the gas to remove NGLs for commercialization, and a 300 megawatts (MW) power plant will use the dry gas to generate electricity for domestic use.
What will be the rate of production?
Approximately 50 million cubic feet per day (mcf/d) of natural gas will flow from the Liza field every day. Aside from power generation, NGL production is expected at 4,000 b/d.
A second phase of the Gas-to-Energy project has been contemplated, with additional gas production of approximately 75 mcf/d. A second power plant would be constructed at 300 MW and the NGL production would be boosted by up to 6,000 b/d. The Guyana government received bids to construct the onshore plants for the second phase, and is yet to make a decision on a contractor.
Who is involved?
ExxonMobil Guyana was responsible for the installation of the pipeline. The Guyana government is responsible for the integrated facility at Wales.
Why is this project being pursued?
Guyana’s consumer rates for electricity are among the highest in the region. The government says the Gas-to-Energy project will provide the fiscal space needed to cut power bills by 50%. Replacing imported heavy fuel oil (HFO) with Guyana’s natural gas as the main source of electricity generation will significantly reduce emissions. The country also experiences power instability, partly due to rising demand outpacing supply. Gas-to-Energy will boost generating capacity by more than 100%, and is part of a larger strategy to reduce power outages.
Government also plans to sell cooking gas, fertilizer and other natural gas by-products domestically and in the Latin America and Caribbean (LAC) region.
What will the project cost?
ExxonMobil Guyana President, Alistair Routledge said the cost amounts to US$1 billion for the onshore and offshore pipeline and ancillary infrastructure. Exxon hired a joint venture of Van Oord and Subsea 7 to lay the offshore pipeline. For the onshore aspect, Exxon hired a joint venture between the Guyanese-owned GAICO Construction and General Services and the Italian, SICIM.
The government contracted a US-based group, comprising CH4 and Lindsayca, in November 2022, to build out the integrated facility at Wales for US$759 million. In July 2025, the government said CH4 left the partnership, with Lindsayca committing to complete the project.
Additionally, the government awarded a US$159 million contract to Kalpataru Projects International Limited to establish transmission lines and substations
Vice President Bharrat Jagdeo said in December 2024 that the total cost is about US$2 billion.
Will it place Guyana in debt?
The government secured full approval for a US$526 million loan from the United States Export-Import Bank that will cover the cost of materials exported from the U.S. by CH4-Lindsayca. The government has faced some criticism for taking on this debt, but top officials are confident the country can manage it, given the expansion of the economy.
Will Guyana be indebted to Exxon?
No, but Exxon and its partners will need to recover their investment in the project through a gas sales agreement. Head of the Gas-to-Energy Task Force, Winston Brassington, said Guyana will pay the co-venturers US$55 million annually for 20 years. He estimated that the commercialization of the excess NGLs will earn Guyana about US$100 million per year, providing the revenues to meet the annual payments and make a profit.
Is this project feasible?
Public discourse in Guyana has tended to question the economic feasibility of the Gas-to-Energy project. Dr. Justin Ram, former chief economist with the Caribbean Development Bank (CDB), conducted a study on the project and told OilNOW in 2022, that even if delivering the project exceeds US$2 billion in costs, it will be worth it. It would be the largest investment into a project in Guyana’s history, but Dr. Ram said the direct and indirect benefits will far outweigh the cost.
What about the environmental impact?
The Environmental Protection Agency (EPA) required ExxonMobil to conduct an environmental Impact Assessment (EIA) on the Gas-to-Energy project, as part of the authorization process. The report predicted that the planned project activities will have negligible to moderate impacts on physical resources, biological and socioeconomic resources – with a number of positive impacts on socioeconomic conditions. The United States Export-Import Bank reviewed these studies before approving the loan. An extensive report on the EIA is on the EPA’s website.
When will the project be delivered?
ExxonMobil completed the pipeline installation in 2024. The Guyana government expects the integrated gas processing facility to be completed by mid-2026, a delay from the original estimated start date of end 2024.
What other infrastructure is planned?
In the fourth quarter of 2025, Guyana opened 12 proposals from groups interested in building a marine storage and offloading facility on the same industrial estate that the plants are being built, at Wales. This facility will receive NGLs from the processing plant at an initial rate of about 4,000 b/d, set to increase to approximately 10,000 b/d when phase 2 kicks in. The project will include a pipeline to take the liquids to the Demerara channel for buyer pick-up. Government will pre-qualify the proposals and invite the select group to bid for the construction tender.
The Government also issued notices seeking proposals for the establishment of a US$300 million ammonia and urea plant, as well as a gas bottling and logistics company. These two ventures are expected to support the agriculture sector and domestic customers with cheap cooking gas. The deadlines for submissions of proposals for both projects are in January 2026.
