The government of Guyana has approved an ambitious G$141.45 billion budget for 2025, with G$51.2 billion (AU$385 million) allocated to the transformative gas-to-energy (GtE) project.
This initiative aims to revolutionise the country’s energy landscape by harnessing offshore natural gas resources to provide more affordable and sustainable electricity.
The project includes the construction of a 300MW combined-cycle power plant and a natural gas liquids (NGL) facility, with G$36.2 billion (AU$272 million) specifically earmarked for these developments.
The GtE project is designed to transport natural gas from the Stabroek Block oilfield, located approximately 160 kilometres offshore, to onshore facilities in Wales, West Bank Demerara.
Once operational, the power plant is expected to double Guyana’s electricity-generating capacity and reduce energy costs for consumers by 50 per cent.
The government anticipates that this enhanced energy infrastructure will catalyse growth in manufacturing and other productive industries, reducing reliance on imported fuels and bolstering national energy security.
Guyana Prime Minister Mark Phillips reviewed the budget allocations under his portfolio, which were approved by the Committee of Supply.
Beyond the GtE project, the broader budget includes investments in telecommunications, disaster preparedness, and government communications.
Additionally, G$18 billion (AU$136 million) has been allocated to support Guyana Power and Light (GPL), ensuring stable electricity distribution, while over G$1 billion (AU$7.5 million) is set aside for consultancy services related to energy projects.
This initiative is further supported by a G$526 million (AU$3.9 million) loan from the Export-Import Bank of the United States, sanctioned in late 2024.
The government’s focus on energy infrastructure underscores its commitment to diversifying power generation through both natural gas and renewable energy sources, including small hydropower projects.
Since the discovery of oil in 2015, Guyana has emerged as a key player in hydrocarbon exploration.
The GtE project represents a cornerstone of its energy strategy, aiming to leverage natural gas resources for economic growth while maintaining fiscal stability in electricity prices despite global fuel price volatility.
