A ‘metered’ price contract instead of a fixed price contract for gas

Dear Editor,

The proposed 300 MW Gas to Power plant will be the largest project (single capital expenditure) in Guyana’s history hence there should be “no room” for errors, delays or failures. The Demerara Berbice Interconnected System (DBIS) has an existing peak load capacity of approximately 162 MW and baseload capacity of approx. 100 – 125 MW. The 2019 Gas to Power feasibility assessment final report had proposed 10 GE LM2500CC generating units (8 operating units and 2 reserve units) for the new generating station with peak output power of approx. 230MW.

The proposed power plant can operate in baseload or load-following mode. A baseload plant produces constant output power while a load-following plant adjusts its power output as demand for electricity fluctuates throughout the day. The gas supply is reported as priced at US$55M/year for 50MMScfd of dry gas (fixed price contract). The new power plant can produce 230MW of baseload power but existing and future loads may require the plant to operate in the load-following mode hence a varying supply of natural gas. A varying demand of natural gas should require a ‘metered’ price contract instead of a fixed price contract. With Vreed-en-Hoop, Garden of Eden and Kingston generating plants online, an extra 162MW may be available.

Has construction started on the 230 KV towers, substations, etc (transmission system)?   Depending on the complexity of the terrain, construction time can take several years.

Sincerely,

Gary Sampson