Gov't says Wales Gas-to-Energy Project still on track for first power by end of 2026

The Government says Guyana’s massive Wales Gas-to-Energy project is moving ahead, with the first electricity expected to be added to the national grid by the end of 2026.

Prime Minister Mark Phillips said construction has picked up pace in recent months and contractors remain committed to delivering the first phase of the project on schedule.

“The Wales Gas-to-Energy project represents a defining moment for Guyana,” the Prime Minister said, noting that the project is expected to cut electricity costs by half for homes and businesses.

The US$1 billion project is the largest energy investment in Guyana’s history and is designed to use natural gas from offshore oil operations to generate up to 300 megawatts of electricity.

Government says the project will:

• Reduce electricity bills by 50 percent
• Improve reliability of power supply
• Reduce fuel imports
• Support cheaper cooking gas for households
• Create jobs and industrial opportunities

In a statement on Thursday, the government also confirmed that contractual disputes with contractor Lindsayca Guyana Inc. have now been resolved, clearing the way for construction to continue without delays or arbitration.

Under the revised agreement:

• The first gas turbine is expected online by the end of 2026
• All gas turbines should be fully operational by early 2027
• Full combined-cycle operations are targeted for June 2027

Government says if those deadlines are missed, penalties against the contractor could be reinstated.

While costs linked to construction issues increased the original contract value by about 12.8 percent, officials say the overall project remains within the government’s broader US$1.1 billion budget ceiling, including contingency funding.

The project is also expected to create significant employment, with workforce numbers projected to rise to more than 1,000 workers next year and peak at up to 1,600 during the height of construction.

Beyond electricity generation, the Wales Development Zone is expected to support future industrial projects including fertilizer production, gas bottling facilities, and other energy-related industries aimed at boosting manufacturing, agriculture, and long-term economic growth in Guyana.

‍