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Wales gas project facing 3-month delay due to sub-contractors – Brassington
Winston Brassington, Head of the Gas-to-Energy (GTE) Task Force
Kaieteur News – Winston Brassington, Head of the Gas-to-Energy (GTE) Task Force, in a statement on Thursday disclosed that the construction of the Integrated Power Plant and Natural Gas Liquids (NGL) facility is facing a three-month delay due to setbacks caused by ExxonMobil’ sub-contractors.
“It is important to note that the AMCHAM forum was held under Chatam House rules, and no media were invited or present. Despite this, certain information has flowed into the media,” Brassington said as he addressed a recent media report that the power plant is expected to generate power during the second half of 2025.
He noted that what was not discussed at the event is the dispute before the Dispute Avoidance / Adjudication Board (DAAB) Tribunal. It was recently disclosed that the arbitration panel for US-million cost overruns claimed by United States-based Lindsayca and CH4 joint venture against the Government of Guyana (GoG) is set to visit next month.
Back in April, the joint-venture made a claim against the Government for US-millions in cost overruns for construction delays for the Wales GTE project. In December 2022, CH4-Lindsayca was awarded a US$759M contract for the construction of two components of the GTE project, the Natural Gas Liquids (NGL) facility and the 300 megawatts (MW) power plant.
Brassington in his statement noted that under the Government of Guyana (GoG) agreement with CH4-Lindsayca, the delivery of the “simple cycle/NGL facilities” was contractually scheduled for delivery on December 31, 2024. Addressing the delays, Brassington explained that the delays stemmed from the late completion of site work by Exxon’s sub-contractor GYSBI and the Material Offloading Facility (MOF) by sub-contractor GAICO.
According to him, the Government has accepted a schedule extension of three months in favour of the contractor. “Flowing from the above, it is to be made clear that the GOG holds Lindsayca/CH4 contractually responsible to deliver the project in “simple cycle” by April 2025,” Brassington said. Moreover, the GTE project head stated that it is the Government’s intent to charge liquidated damages on any delay thereafter at a Liquidated Damages (LD) rate of US$377,000/day per the contract. This amounts to US$11.3 million per month.
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