Guyana commits to 500MW, institutional reform

Guyana’s government is advancing efforts to add at least 500MW in the immediate term with the potential to expand longer term, President Mohamed Irfaan Ali said during a speech to mark his first year in office.

The head of state highlighted a 250MW project as part of plans to land natural gas onshore, the 160MW Amaila Falls hydro, 30MW of solar and standalone renewable systems, including hydro and solar, for off-grid communities.

“Work in all of these areas have commenced and are at various stages of implementation. The final outcome would see energy costs slashed by at least 50% before the end of 2024,” according to Irfaan.

He added that “reducing the cost of doing business in Guyana first and foremost must be on the top of the agenda by addressing the challenges in respect of the availability and cost of energy.”

Read Guyana issues gas to power project call, Guyana issues call to resurrect 165MW Amaila hydro and Caribbean power watch: Hydro call, distribution PPP support

Another action area pointed to by the president was institutional strengthening related to the safeguard of the country’s natural resources amid the build-out of the oil and gas sector.

“In the case of our sovereign wealth fund (the Natural Resources Fund which is slated for reform), we will ensure a modern legal framework is in place to ensure openness and transparency.”

A report released in recent days by the Natural Resource Governance Institute recommended that the government bolster the fund “to ensure transparent and accountable practices that contribute to successful revenue management.”

Read Guyana hydrocarbons governance branded as ‘weak’

In its latest Natural Resource Fund quarterly report for April-June 2021, the Bank of Guyana said that “to date, there has been no investment mandate for the fund … until a series of reforms are enacted to strengthen the regulatory infrastructure of the oil and gas sector.”

Source: Bank of Guyana 

LAND USE

Meanwhile, Guyana's Department of Public Information (DPI) reported that the government seeks to amend the section of the Petroleum (Exploration and Production) Act that deals with restrictions on rights of licensees and surface rights.

The amendment would give the government "greater control over the use of lands, both public and private, by petroleum operators," said DPI.

The development followed the introduction of revisions to the Petroleum (Exploration and Production) (Amendment) Bill 2021 by natural resources minister Vickram Bharrat during a national assembly meeting.

"The bill makes amendments which speak to work done by a petroleum licensee, in aid of its operations, on state land, government land, or land otherwise controlled or under the management of the government of Guyana. It allows the minister to grant permission to the licensee to land, install or operate any pipelines or submarine, fibre optic cable or terrestrial cables or similar infrastructure, on or through the said land," added DPI.

"The bill also makes amendments which speak to the granting of consent to the Minister and a petroleum licensee for use of land by the private owners or lawful occupiers of said land, in aid of petroleum operations."