Dear Editor,
In less than two years, without any public disclosure of the reasons, all the Government’s projections to justify the Wales Gas to Shore project have been proven incorrect. Yet the PPP forges ahead with the project, regardless of the implications for the country. Below is a
comparison of the Government’s position as presented by the Guyana Power and Gas Inc. (GPGI) and how it has changed in two years:
During the March 2023 presentation, no explanation was given for the forty-five (45%) percent reduction in projected energy demand which seems to contradict expectations based on the country’s anticipated increase in GDP. However, the Government has indicated that on the commissioning of the new NGL plants all other HFO plants will be turned off, since the new plant will have excess capacity.
Note, that the useful lifespan of these generators is 25 years, Vreed-en-Hoop was commissioned in 2015, Garden of Eden in 2021, Canefield in 2019, Kingston in 2012 – most having more than 20 years useful lifespan remaining. One may inquire as to who will absolve these costs – the response was that it has been considered as “sunk” cost.
Having completely misrepresented the projected demand as well as the economic viability of the Gas to Energy project, the Government in an effort to make this project somewhat viable, will be discarding over US$450M of investments over the last ten (10) years. Interestingly, GPL still has to repay these amounts plus undertake the burdensome costs of the new power plant. The more that is revealed, the less viable the Wales Gas to Shore project appears. Please see attached presentations referred to above.
Sincerely,
David Patterson
