Guyana's Energy Future: $500 Million Loan Boost for Gas Project

Guyana has secured preliminary approval for a $500 million loan guarantee from the U.S. ExIm Bank to support its $2 billion gas-to-energy project. Delays have pushed initial operations to late 2025, with disputes causing further setbacks. This development promises a notable decrease in power costs.

Guyana has taken a significant step towards transforming its energy landscape, having received preliminary approval from the U.S. Export-Import Bank for a loan guarantee exceeding $500 million. This financing will aid the completion of a vital natural-gas fired power project and accompanying gas processing facility.

Currently underway, the $2 billion project aims to address energy supply challenges, although delays have pushed its startup to potentially the fourth quarter of 2025. These delays stem from late equipment deliveries and a contract dispute, contributing to the setback of the first phase of the 300-megawatt power plant.

Vice President Bharrat Jagdeo noted that the U.S. ExIm Bank's loan will support purchases of necessary U.S. supplied equipment, alleviating financial strains on Guyana's treasury. The project holds potential to halve power supply costs and foster industry expansion, with discussions ongoing amid contract arbitration.

(With inputs from agencies.)