The Government of Guyana says the US$1 billion Wales Gas-to-Energy (GtE) project is advancing rapidly, with first power expected to be delivered to the national grid by the end of 2026.
Prime Minister Mark Phillips said contractors have made significant progress in recent months and reaffirmed the government’s commitment to cutting electricity costs for households and businesses by 50 percent.
“The Wales Gas to Energy project represents a defining moment for Guyana and for the energy future of every citizen of this nation,” Phillips stated, adding that the administration remains satisfied with the pace of works and focused on delivering cheaper and more reliable electricity.
The 300-megawatt project, the largest electricity investment in Guyana’s history, is expected to double national generating capacity while reducing fuel imports and stabilising energy costs. The initiative will also support domestic production of liquefied petroleum gas (LPG) for cleaner household cooking and strengthen the country’s wider industrial and energy sectors.
Government said all major contractual disputes with contractor Lindsayca Guyana Inc. have now been resolved, including matters related to soil stabilisation and project delays that had previously gone before a Dispute Avoidance/Adjudication Board in January 2025. Officials said the agreement removes the need for arbitration and allows construction to proceed without interruption.
Although the settlement increases the original US$759 million contract by 12.8 percent, the administration said the wider project including the power plant, natural gas liquids facility, transmission infrastructure, substations and the new National Control Centre remains within the overall US$1.1 billion budget ceiling, including a 10 percent contingency.
Government also announced strict timelines for completion. Under the revised agreement, the contractor is expected to bring the first gas turbine online by the end of 2026, commission all gas turbines by the first quarter of 2027, and complete combined-cycle operations by June 2027. Failure to meet these milestones could result in liquidated damages being reinstated against the contractor.
The project is also expected to generate substantial employment, with the workforce projected to reach 1,100 workers by the second quarter of 2026 and peak between 1,400 and 1,600 workers during the height of construction. Authorities said local hiring remains a priority.
Beyond energy generation, the Wales Development Zone is being positioned as a major industrial hub. Government said complementary facilities, including a proposed ammonia and urea plant, LPG bottling operations and marine storage facilities, are expected to create additional jobs, lower production costs and support sectors such as agriculture and manufacturing.
The project forms a key pillar of Guyana’s industrialisation drive and long-term energy security strategy.
