Guyana launches tender for power plant, natural gas liquids facility
By Kemol King
GEORGETOWN, Sept 20 (Reuters) -Guyana on Friday issued a request for proposals to build a gas-fired power plant and a facility for processing natural gas liquids, projects to feed industrial customers from its mostly untapped offshore gas reserves.
The nation of 800,000 people relies on heavy fuel imports to generate power and consumers face frequent outages caused by a faulty grid and generation shortfalls.
The government has set Nov. 14 as deadline for receiving offers for the design, finance and operation of a 250-megawatt combined-cycle power plant that would deliver electricity to the country's state utility through a contract for 20 to 25 years.
The tender also includes a facility that would produce some 6,000 barrels per day of natural gas liquids by utilizing some 75 million cubic feet per day of offshore gas.
The projects are meant to be private-sector owned, but the South American country said it reserves the right to buy it out anytime after commissioning.
The developments represent the second leg of Guyana's gas-to-power strategy, pushed by the government to secure gas for the country from Exxon Mobil-operated fields, where more than 11 billion barrels of recoverable oil and gas have been found.
Exxon XOM.N, Hess HES.N and CNOOC 0883.HK control all oil and gas output in Guyana through a consortium.
The companies are soon to complete an undersea pipeline from their Liza Destiny and Liza Unity floating facilities to supply gas to onshore projects.
The pipeline will bring gas to a 300MW-power plant and a first NGL facility as part of the $1.9 billion first phase of the gas-to-power strategy, expected to be begin generating electricity in the fourth quarter of 2025, officials have said.
Gas from the second-phase would go to power generation and other industries, including a proposed fertilizer plant, the tender published by the office of the Prime Minister said.
The Exxon-group began oil production in Guyana in 2019. All output is currently being exported.
Reporting by Kemol King in Georgetown; editing by Gary McWilliams and Marianna Parraga
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