Two gas projects, many more questions, concerns

This is a fine example of fiscal prudence, quality leadership, visionary governance.  Two Gas-to-Energy (GTE) projects, and Guyana’s biggest national budget ever is jostling for first place with the two GTEs relative to which requires more billions.  From what is known publicly, the Wales GTE holds steady at US$2.102 billion.  Included is the US$102 million Lindsayca-CH4 won in its soil stability dispute with Guyana.  It is also asking for, more like demanding, an additional US$250 million to get the two remaining jobs it contracted for done.  Namely, completing the gas conversion facility and the power generation plant.  When that US$250 million is added, the Wales GTE is set to cost US$2.352 billion (more than GY$500 billion).  Aside: Pres. Ali has made sanctity of contract the backbone of his refusal to renegotiate the Exxon oil contract.  Let’s see how he responds to Lindsayca-CH4’s push to squeeze another quarter billion US$ out of Guyana.  If he approves, it would hoist the original contract figure of US$759 million for the two unfinished facilities to over US$1 billion.

Though the completion and operationalizing of the Wales GTE is nowhere near to the finish line, a second GTE, this time for Berbice, has made its way into the national consciousness and conversation.  Reports are that it would cost at least twice the price of the Wales GTE.  The Wales GTE is causing Guyana no ends of trouble (reengineering and working around, delays, cost overruns, suitability, and so forth), but Guyana’s movers and shakers are being drawn into another GTE at twice the cost.  It could be asserted with reasonable assurance that the GTE projects will come very close to US$7 billion, if not more (US$2.342 billion for Wales, and US$4.64 billion for the Berbice GTE.  Though he didn’t offer any specific figures, Exxon’s Mr. Alistair Routledge made that clear, set that expectation.  Two GTE projects and a record national budget could be overtaken relative to dollars needed.  The 2026 budget was GY$1.558 trillion.  With Wales and Berbice considered, that’s US$7 billion which will be needed.  I urge my fellow citizens to keep the math simple. Pick a low USD: GY exchange rate.  The result veers uncomfortably close to GY$1.558 trillion that was Guyana’s biggest budget ever.

Can Guyana afford to spend so much on two projects?  As dire as the need is for a cheaper, better supply of energy, does this make sense?  When the problem-plagued Wales GTE isconsidered, Guyanese who can still think for themselves are invited to weigh the value of rushing into another GTE so quickly.  Almost like a reckless gambler, who abandons restraint, and goes on a spree.  

Consequences, be damned.  It is said that a fool and his money are soon parted.  I wonder if this will be the story of Guyana, its leaders, and the decisions they make about putting to the best use the oil money that belongs to the people.  Guyana cannot get going. Guyana cannot get a break.  Guyana is on the backfoot with the Wales GTE, but plunging into a bigger one, as if stone deaf, and blindfolded.  As though there is an addiction in the PPP Govt to joining with others and finding new ways to spend more of the billions (from any source) that are owned, or will be owed, by Guyanese.

A better approach is to get the first one right, and delivering.  Only then, move to a bigger one, despite electricity deficiencies ravaging this country so much.  Delay more added to Cost Oil.  More borrowed.  More withdrawn from the Oil Fund.  If this isn’t madness, then what is?  If not madness, then everyone else is crazy.  Instead of developments and projects to build Guyana sensibly and honestly, the priority is to milk it first.  Then bleed it. Party time, folks.