Guyana’s Gas-to-Energy project is a key part of an effort by the government to ensure the former sugar estate community of Wales transitions into a new industrial hub, replacing economic activity lost after the closure of the estate nearly a decade ago.
The Wales sugar estate, the West Bank of Demerara, was among several shuttered between 2015 and 2020 by the APNU+AFC administration, a move that displaced thousands of workers and left communities dependent on the industry struggling with job losses and delayed severance payments.
Now the PPP/C government is seeking to reposition the area as a centre for gas-based industries tied to offshore natural gas resources. At the centre of that transformation is the Gas-to-Energy project, which will bring natural gas from Guyana’s offshore fields to Wales to fuel a combined-cycle power plant and natural gas liquids (NGL) facility. The government has said the project is expected to reduce electricity costs by about 50% once commissioned by year’s end.
But the power plant represents only the first stage of a wider industrial ecosystem that the government hopes will generate jobs and revitalise economic activity in the surrounding region. Two projects linked to the industrial hub are now advancing.
Ten groups have submitted proposals to design, build and operate a cooking gas bottling and logistics facility in Wales under a public-private partnership model, according to tender information released by the National Procurement and Tender Administration Board.
The proposed facility would bottle and distribute cooking gas domestically using natural gas supplied by Guyana Power and Gas Inc., the government-owned company responsible for managing onshore gas infrastructure. Domestic demand for cooking gas is estimated at roughly three million 20-pound cylinders annually, representing a retail market valued at about $14 billion.
Because Guyana currently imports most of its cooking gas, producing it locally using offshore natural gas is expected to significantly lower the cost for households.
In parallel, the government is advancing plans for the Guyana Ammonia and Urea Plant (GAUP), another gas-based industrial project planned for the same Wales area.
Ten groups have also submitted bids to construct the fertilizer facility, which will be developed as a public-private partnership and will use up to 20 million cubic feet of natural gas per day from the second phase of the Gas-to-Energy project. Once completed, the plant is expected to produce about 300,000 tonnes of fertilizer annually. The facility is intended to supply both domestic and regional markets, including the Caribbean and northern Brazil, while helping to reduce fertilizer costs and boost agricultural productivity.
The fertilizer project also reflects a broader effort to diversify Guyana’s economy following the commencement of oil production in December 2019.
By using natural gas to support industries such as fertilizer production, the government means to channel the benefits of the country’s petroleum sector into other areas of the economy. Agriculture remains a longstanding pillar of Guyana’s economic activity, and cheaper fertilizer could support farmers while strengthening food production across the region.
Together, the power plant, gas bottling plant and fertilizer project point to a wider strategy to replace declining sugar-based economic activity in Wales with a new industrial base built around natural gas. The development indicates that communities once dependent on sugar will not be left behind as the country’s economy transforms.