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Gov’t aiming to start-up gas project by mid-2025
…invites bids for operation and maintenance of NGL plant
Kaieteur News- The Government of Guyana (GoG) is hoping to start up the Gas-to-Energy (GTE) project- geared at slashing electricity costs by 50% – by mid-2025.
This is according to a Request For Proposals (RFP) issued by the Office of the Prime Minister on Sunday, where qualified firms have been invited to operate and maintain the Natural Gas Liquids (NGL) plant, associated with Phase One of the gas project.
The NGL fractionation plant is designed to extract liquids (C3, C4, C5+) from 50 million standard cubic feet of gas per day (MMSCFD). Gas will be delivered to the plant via a pipeline running from the offshore Stabroek block to the onshore Integrated Plant Site (ISP) and operated by others.
An artist’s impression of the Gas-to-Energy project
Kaieteur News understands that the NGLs will be stored and/or dispatched from the Southern side of the Integrated Facilities 100-acre site, where short-term storage will be in place to allow delivery via road and pipeline to the medium-term Storage Facility.
A medium-term Storage Facility will be built east of the Integrated Facility to provide for two-months storage and facilitate 2km shipments via road or river. Additionally, the project will feature a 2KM pipeline “to connect to short-term and medium-term storage with the Demerara River and Materials Offloading Facility (MOF).”
OPM explained that the O&M contract does not include O&M of the 300 MW combined cycle power plant and auxiliary facilities. This will be performed by Siemen Energy SAS, which will have overall responsibility for coordination of the O&M for integrated facilities.
The NGL plant is located on a 100-acre integrated Plant Site located within the Wales Industrial Zone approximately 25 km inland on the West Bank of the Demerara River. Additional storage will be located on land east of the 100-acre site.
Interested bidders will be required to show O&M experience of at least three NGL plants, comparable to that being constructed in Guyana. Firms must also have a strong Health, Safety and Environment (HSE) culture and demonstrate capabilities in workforce training, particularly focusing on local content, use of advanced technology for efficient operations and safety monitoring and the financial capacity to manage large-scale operations.
According to the RFP, only firms (consortia) experienced in Operation and Maintenance of comparable facilities will be ranked; however, they will be required to list relevant experience and reference projects over the last 15 years, as well as provide audited financial statements or other evidence of financial strength.
Additionally, bidders will be expected to submit O&M fee structures from comparable projects, provide a template of projected O&M costs over each period; state expected profit margins or fees and state project guarantees related to availability and efficiency.
Additionally, the RFP requires firms to, “Submit organizational chart (separating local vs foreign staff) and ramp-up assuming start-upmid-2025.”
The GOG said negotiations will take place with the highest ranked technical proposal with the objective of concluding an O&M Contract. Responses to this RFP must be received by Chairman of the National Procurement and Tender Administration Board (NPTAB) by 2 PM on March 13, 2025. In the meantime, government has made it clear that it is not bound to accept any response to this RFP and reserves the right to select any Party for any specific element of the RFP and to annul the process at any time without further direction, without thereby incurring any liability to the affected interested parties.
(Gov’t aiming to start-up gas project by mid-2025)
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