Wales power station
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Wales power station is a power station in pre-construction in Wales, Essequibo Islands-West Demerara, Guyana. It is also known as Gas-to-Energy Power Plant.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Wales power station | Wales, Essequibo Islands-West Demerara, Guyana | 6.702742, -58.20634 (approximate)[1] |
The map below shows the approximate location of the power station.
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | CHP | Start year |
|---|---|---|---|---|---|---|
| 1 | Pre-construction[2][3][4][5][6] | fossil gas: natural gas, fossil liquids: diesel[3] | 300[7][3] | combined cycle[3] | not found | 2025 (planned)[8][9] |
CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.
Table 3: Unit-level ownership and operator details
| Unit name | Owner | Parent |
|---|---|---|
| 1 | Guyana Power and Light Inc [100%][7][10][11][3][12] | Guyana Power and Light Inc [100.0%] |
Background
The Wales power station is part of a proposed gas-to-power project (the Gas-to-Energy Project) that would make use of natural gas from the Liza oil and gas field in the Stabroek Oil and Gas Block off Guyana's Atlantic coast. Natural gas for the power station would be transported onshore via the proposed Liza Gas Pipeline.[13]
The project's original phase was to be a 300 MW power plant consisting of two 150 MW combined cycle units, each deploying 2 Siemens SGT-800 gas turbines and 1 Siemens SST-400 steam turbine.[14]
During early 2021, locations for the power station were being proposed and the former Wales Sugar Estate was favored as of January 2021 because of its proximity to population centers.[15] Politicians were emphasizing job creation and social program support that would be possible with the establishment of the power station in the Wales area.[16] However, civil society groups such as the Alliance For Change (AFC) expressed opposition to the power station due to its high cost and relatively short lifespan (approximately 11 years).[17] The AFC also noted that any pipeline associated with the power station would be a risk to maritime traffic.[17]
As of October 2020, Guyanese president Irfaan Ali said that he expected the project to be completed by the end of 2023.[18] By July 2021, the expected completion date had slipped to 2025.[19] In January 2022, ExxonMobil Guyana's president Alistair Routledge expressed hopes that a final investment decision would be made for the gas-to-power project during the first half of 2022.[13]
Bidding process for Phase 1
As of January 2022, 12 companies had submitted construction bids for Phase 1 of the Wales power station, including Amerapex Corporation; National Gas Company of Trinidad and Tobago; Constutora Queiroz Galva; China Machinery Engineering Cooperation; Power China International Group; China Energy International Guyana Company Limited; CEPCOII Electric Power; CH4 Guyana Incorporated; Lyndsayca Incorporated; Apan Energy; Wison Offshore and Marine Limited; and Técnicas Reunidas.[20]
In August 2022, the Guyanese government issued an official Request for Proposals (RFP) for the 300 MW Wales gas plant and the associated gas pipeline, which stipulated that plant was to be owned and operated by the Government of Guyana.[21] The specific agency designated to run the plant is Guyana Power and Light[22], a 100% state-owned entity.[23]
As of October 2022, the Guyanese government was reportedly considering bids from five companies to oversee the plant's construction. The companies under consideration included Guycan Consortium, China Energy Int’l Group Co Ltd, China Machinery Engineering Inc, Power China International Group Ltd, and a consortium formed by Lindsayca Inc & CH4 Guyana Inc.[24] In December 2022, the government announced that it had signed a contract with Lindsayca-CH4 for construction of the US$ 759 million project.[25]
Construction of Phase 1
News reports in late 2022 and early 2023 indicated that the plant remained on track for a 2024 commissioning date.[26][27][28] Preliminary work was underway as of October 2023, including the clearing of land, laying of special drainage infrastructure, road improvements and bridge reinforcements designed to facilitate access to the power plant.[29]
As of April 2024, according to an article published online in the Guyana Business Journal, "despite delays in constructing the power plant, which has been postponed by at least six months due to disagreements between the Guyana Government and the contractor, Lindsayca CH4 Guyana Inc (LNDCH4), ExxonMobil remains confident that the pipeline will be completed by the end of 2024, laying the groundwork for the power plant’s completion."[30] According to various sources, the plant's construction was expected to begin in the second quarter of 2024, with full operations to follow sometime in the fourth quarter of 2025.[31][32][33][34]
Legal problems and delays related to the project have resulted in major cost overruns (US$90 million), leading to two of the project's contractors initiating legal proceedings against the Government of Guyana.[33][35]
According to an article published online in Kaieteur News on May 12, 2024, "agreements for the Gas-to-Energy (GTE) project are yet to be laid in the National Assembly despite repeated commitments by government." [36]The same article also explained that "this has sparked concern among stakeholders, since it remains the single largest financial project ever pursued by Guyana."[36] The government has so far been reluctant to release documents related to this project, despite several attempts made by the opposition to seek clarity on the matter.[36]
As of September 2024, pile driving was reportedly underway at the Phase 1 construction site.[37] Meanwhile, project developer Lindsayca and the Guyanese government remained embroiled in a contract dispute[38], with the former lobbying for an October 2025 commissioning date even as Guyanese Vice President Bharrat Jagdeo threatened to penalize the company for non-compliance with the April 2025 start-up stipulated in the original contract.[38]
Proposed Phase 2
In September 2024, the Guyanese government issued an official Request for Proposals for Phase 2 of the Wales power station. The second phase was to be a 250 MW combined cycle unit, with bids to be submitted for consideration no later than November 14, 2024.[39][40]
Opposition
Critics have questioned the financial viability of building the Wales Power Station and the associated Liza Gas Pipeline, suggesting that solar electricity would offer a more cost-effective way to satisfy Guyana's electrical demand.[41][42]
People opposing the project have also highlighted that "there are a lot of decisions yet to be made and little clarity over the next steps, including who will operate the power plant and market the gas-liquids such as propane produced by the related gas-processing facility."[43] Additionally, "residents have filed lawsuits claiming unfair compensation for land taken to build the project."[43]
Articles and Resources
References
- ↑ https://web.archive.org/web/20240125123544/https://www.forbes.com/blaize/profile/savedArticles. Archived from the original on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20230327155451/https://guyanaenergy.gy/preliminary-works-start-for-gas-to-power-project-in-guyana-ahead-of-fid/. Archived from the original on 27 March 2023.
{{cite web}}: Missing or empty|title=(help) - ↑ 3.0 3.1 3.2 3.3 3.4 https://web.archive.org/web/20240125093140/https://dpi.gov.gy/govt-receives-pre-qualification-bids-for-gas-to-energy-project/. Archived from the original on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20240125105941/https://oilnow.gy/featured/gas-to-energy-project-guyanese-will-be-at-forefront-of-construction-operation/. Archived from the original on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20240125105914/https://www.argusmedia.com/en/news/2110903-guyana-to-offer-gastopower-project. Archived from the original on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20230402222313/https://www.kaieteurnewsonline.com/2023/02/20/300mw-gas-fired-power-plant-may-not-be-sufficient-to-meet-electricity-demand-brassington/. Archived from the original on 02 April 2023.
{{cite web}}: Check date values in:|archive-date=(help); Missing or empty|title=(help) - ↑ 7.0 7.1 https://web.archive.org/web/20240125102339/https://nre.gov.gy/2022/08/29/rfp-for-the-legal-consultancy-for-gas-to-energy-project-aug-27-2020/. Archived from the original on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ https://www.kaieteurnewsonline.com/2023/10/15/gas-to-energy-project-to-start-up-one-year-later-than-promised/.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20240523235409/https://guyanabusinessjournal.com/2024/04/guyanas-gas-to-energy-project-progress-collaboration-and-challenges/. Archived from the original on 23 May 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20240125115313/https://www.stabroeknews.com/2022/10/02/news/guyana/govt-retains-right-to-accept-or-reject-bids-for-wales-gas-plant-without-liability/. Archived from the original on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20240125121636/https://gplinc.com/about-us/who-we-are/. Archived from the original on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20240125121619/https://newsroom.gy/2022/05/12/govt-may-execute-both-natural-gas-power-plants-at-wales-exxon-official/. Archived from the original on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ 13.0 13.1 "Liza Unity start-up, gas-to-energy FID among major projects for Exxon this year - Routledge". OilNow. January 5, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Development and Expansion Programme 2024-2028 (p 49)" (PDF). Guyana Power & Light, Inc. 2023-12-15.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Wales, Ogle, Vreed-en-Hoop among potential sites for gas-to-energy plant - Guyana Chronicle". Guyana Chronicle. 2021-01-03. Retrieved 2021-07-01.
- ↑ GTIMES (2021-01-11). "Liquefied Petroleum Gas plant being considered for Wales – President Ali - Guyana Times". Guyana Times. Retrieved 2021-07-01.
- ↑ 17.0 17.1 "Patterson says Wales gas-to-shore plans half-baked - Stabroek News". Stabroek News. 2021-05-02. Retrieved 2021-07-01.
- ↑ "Ali expects gas to shore project to deliver by end of 2023". Stabroek News. October 28, 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Gas-to-energy project: Guyanese will be at forefront of construction, operation". OilNow. July 24, 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Govt receives pre-qualification bids for gas-to-energy project". Department of Public Information, Guyana. January 23, 2022.
- ↑ "RFP for the Legal Consultancy for Gas to Energy Project". Ministry of Natural Resources, Guyana. Aug 27, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Gov't may execute both natural gas & power plants at Wales – Exxon official". News Room Guyana. May 12, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ Who We Are, Guyana Power and Light, accessed Nov 10, 2022
- ↑ "Gov't retains right to accept or reject bids for Wales gas plant without liability". Stabroek News. October 2, 2022.
- ↑ "Govt. signs agreement to build US$759M Wales gas plant". Kaieteur News. December 14, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Gas-to-Energy power plant must be done by 2024; NGL facility may come later – Jagdeo". OilNOW. August 25, 2022.
- ↑ "Gas-to-Energy project on track for 2024 delivery - Jagdeo". OilNOW. May 20, 2023.
- ↑ "Gov't retains right to accept or reject bids for Wales gas plant without liability". Stabroek News. October 2, 2022.
- ↑ "'Good progress' made on construction of Gas-to-Energy plant". News Room Guyana. October 18, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ guyanabusinessjournal (2024-04-30). "Guyana's Gas-to-Energy Project: Progress, Collaboration, and Challenges". Guyana Business Journal & Magazine. Retrieved 2024-05-22.
{{cite web}}:|last=has generic name (help) - ↑ "Guyana's $1.9 billion gas-to-power project delayed to 2025". Reuters. 2024-02-20.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Exxon to shut 2 platforms in Guyana for 2 weeks each to connect pipeline". Reuters. 2024-04-30.
{{cite web}}: CS1 maint: url-status (link) - ↑ 33.0 33.1 Guyana, News Source (2024-04-10). "Two companies attached to gas to energy project file for arbitration over costs overruns -Reuters report". News Source Guyana. Retrieved 2024-05-22.
- ↑ OilNOW (2024-01-17). "Construction of Guyana's Gas-to-Energy power plant to commence in Q2 2024 - Minister | OilNOW". Retrieved 2024-05-22.
- ↑ KNEWS (2024-04-10). "Foreign contractors take Guyana to Court for US$90M over delays in Wales Gas Project". Kaieteur News. Retrieved 2024-05-22.
- ↑ 36.0 36.1 36.2 KNEWS (2024-03-12). "Govt. hiding Wales gas plant agreements from public". Kaieteur News. Retrieved 2024-05-22.
- ↑ "Pile driving activities underway for delayed Gas-to-Energy project". Kaieteur News. 2024-09-18.
{{cite web}}: CS1 maint: url-status (link) - ↑ 38.0 38.1 "Gas-to-Energy Project: Power plant to start supplying national grid by April 2025 – VP". Guyana Times. 2024-09-27.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Request for Proposals – Phase II: Gas to Energy Project". Office of the Prime Minister of Guyana - DPI (Department of Public Information). 2024-09-18.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Gov't extends Request for Proposals for Phase Two of Gas to Energy project". Office of the Prime Minister of Guyana - DPI (Department of Public Information). 2024-09-20.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Int'l lawyer challenges VP Jagdeo to show evidence that gas-to-shore project will work". Kaieteur News. March 27, 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Reinject gas and save Guyana". Kaieteur News. May 30, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ 43.0 43.1 News Room (April 8, 2024). "Guyana gas-to-power project to shave weeks off oil output, hit revenue". News Room. Retrieved May 22, 2024.
{{cite web}}: CS1 maint: url-status (link)
Additional data
To access additional data, including an interactive map of gas-fired power stations, a downloadable dataset, and summary data, please visit the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.
