The Government of Guyana says the landmark 300-megawatt Wales Gas-to-Energy (GtE) project is advancing rapidly, with first power expected to be delivered to the national grid by the end of 2026.
Prime Minister Brigadier (Retโd) Mark Phillips said recent months have seen significant progress on the countryโs largest infrastructure project to date, while reaffirming the administrationโs commitment to reducing electricity costs and strengthening national energy security.
โThe Wales Gas-to-Energy project represents a defining moment for Guyana and for the energy future of every citizen of this nation,โ Phillips said. โWe 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,โ a statement from the Prime Minister said.
The integrated project is designed to harness offshore natural gas to transform Guyanaโs power sector by generating 300 MW of electricity while also supporting domestic production of liquefied petroleum gas (LPG) for cleaner household cooking. Government officials say the initiative will reduce electricity tariffs by 50 percent, improve reliability, stabilise energy costs and significantly reduce fuel imports.
The project forms part of a broader national energy strategy that also incorporates renewable energy development to ensure long-term affordability, reliability and sustainability.
Officials said the Wales GtE project is expected to double Guyanaโs national generation capacity while boosting industrial and commercial competitiveness through lower operating costs.
The Government also announced that all outstanding contractual matters with contractor Lindsayca Guyana Inc. have been resolved following decisions issued by the Dispute Avoidance/Adjudication Board (DAAB) in January 2025 regarding soil stabilisation works and delay-related provisions.
According to the Government, the amicable settlement removes the need for arbitration and allows construction to proceed under what it described as a โfully aligned, forward-looking framework.โ
The settlement represents a 12.8 percent increase over the original US$759 million contract sum. However, officials said the overall project remains within the Governmentโs broader budget framework, which includes a contingency allocation.
The wider Gas-to-Energy programme includes the 300 MW power plant, a Natural Gas Liquids (NGL) facility, transmission infrastructure, substations, 230 kV and 69 kV transmission lines and a new National Control Centre at Goedverwagting.
Government said the total cost of the overall programme is not expected to exceed US$1.1 billion, inclusive of contingency provisions.
Under the revised implementation schedule, Lindsayca Guyana Inc. is expected to bring the first gas turbine online by the end of 2026, with all gas turbines fully commissioned by the first quarter of 2027. Combined-cycle operations are slated for completion by June 2027.
The Government said liquidated damages could be reinstated if the contractor fails to meet the agreed milestones.
Authorities also highlighted the projectโs growing economic impact, noting that employment is expected to increase to about 1,100 workers during the second quarter of 2026 and peak between 1,400 and 1,600 workers during the height of construction activity.
Officials said local hiring remains a priority, with Guyanese workers and businesses expected to benefit from increased demand across transportation, logistics, construction supply and related industries.
Beyond power generation, the Government said the Wales Development Zone is emerging as a major industrial hub that could support downstream industries including a proposed ammonia and urea plant, LPG bottling and logistics facilities and marine storage and offloading infrastructure for natural gas liquids.
Officials said these complementary developments are expected to create thousands of additional jobs, reduce dependence on imported fertilisers and fuel products and support Guyanaโs long-term industrialisation agenda.
The Government maintains that the Gas-to-Energy initiative will play a central role in advancing national energy security while laying the foundation for a more diversified and production-driven economy.