GEORGETOWN, Guyana (CMC) – Defending the country’s gas-to-energy project, Vice President Bharrat Jagdeo has insisted that the United States Export-Import Bank of the United State (EXIM Bank) would not have approved a US$526 million loan for the project if it was not feasible.

He said approval followed an independent, technical and environmental feasibility study. According to Jagdeo, before approving the loan, EXIM Bank conducted a thorough review to determine the viability of the venture.

“This loan went to the United States Congress and it would have been blocked by the Congress if we didn’t have adequate answers,” he said.

On Thursday, President Irfaan Ali was notified by President and Chair of the EXIM Bank, Reta Jo Lewis of the approval.

“For those people who have been opposed to the project and said, it’s a fossil fuel project, I just want to draw their attention to what the press release from EXIM Bank pointed out,” Jagdeo said, noting that it will reduce 460,000 tonnes of carbon emissions annually, equivalent to the emissions from approximately one million barrels of oil per year.

In addition, the government will be saving approximately $100 million annually on fuel costs, while electricity costs will be slashed by 50 per cent, leading to an annual saving of $250 million.

The vice president further explained: “It has an impact on both balance of payment of the country and also in the pockets of Guyanese companies and individuals.”

He said the project will deliver substantial benefits to Guyanese citizens, with strong support from the US Government.

Jagdeo expressed satisfaction with the loan approval, making it clear that the financial resources will only fund 25 per cent of the project. Approximately $2 billion is required to construct the facility, with the government expending its own resources to finance the rest of the project, including through a partnership with ExxonMobil.

The project will see the construction of an integrated gas processing facility at Wales, West Bank Demerara in Region Three, that will allow natural gas to be transported offshore the Stabroek Block’s Liza oilfield.

When completed, approximately 300MW of power will be added to the grid, expanding electricity supply and cutting Guyana’s footprint per kilowatt hour, and reducing energy costs by a massive 50 per cent.

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