Latest update April 24th, 2024 12:59 AM
Feb 22, 2021 News
Kaieteur News-Vice President, Dr. Bharrat Jagdeo, on Tuesday February 9, last, gave a crude estimate of four years for the repayment of the development cost for the proposed gas-to-shore project. He said that the crude estimate for the cost of the project is between US$500-800 million, depending on the design, pipeline size and surveys.
During a press conference held at the Arthur Chung Conference Centre, Dr. Jagdeo said the cost would ultimately be defined when the government goes out to tender – “That’s the only time we will actually know the actual cost of it.”
The Vice President said that crude estimates about the payment plan range from 6 cents per kwh down to about 3 cents per kwh after the development cost has been repaid.
“I’m just giving you [crude] because we’re at this stage of looking at numbers so it’s estimates,” he said.
In the early years of the project, before it is paid off, Jagdeo expects the payments for the gas to be about 6-7 cents per kilowatt hour (kwh) depending on the s
tructure of financing, whether government owned or privately owned.
He views such state of affairs as a significant improvement on the status quo. He said “Now we’re selling at 30 cents per kwh… So you’re looking at a significant reducti
on in energy costs, huge.”
Dr. Jagdeo said critics of the proposed project should hold off on saying the gas-to-shore project is not feasible if they have not done a feasibility study.
“It’s not feasible? I don’t know how you can say it’s not feasible when you haven’t done a feasibility study,” he added. “They have not done the feasibility study but they said it’s not feasible for us. Power at 6 cents per kwh when we’re generating at maybe twice or even higher than that, and selling at 30 cents per kwh. That’s very, very feasible to us, the Guyanese public and the private sector, very feasible.”
The Vice President maintained that the benefits of the project are enormous, including savings on the cost of fuel and the lesser impact of the gas on the environment than fuel.
The government has committed to doing four studies on the gas-to-shore project planned for landing at the old Wales sugar estate.
“So several studies are in the process of being contracted,” Jagdeo said during the same press conference. “There is a geophysical study, a geotechnical study, a lidar study, and an environmental impact study.”
No plans have been reported for the conduction of a study of the financial viability of the project.
LISTEN HOW JAGDEO WILL MAKE ALL GUYANESE RICH!!!
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