Dear Editor,
Guyana needs to convert its natural gas to electricity to improve the reliability of the Demerara Berbice Interconnected System (DBIS). Other factors that may affect reliability of the DBIS are Transmission & Distribution (T&D) infrastructure, maintenance, etc.
Reference the following documents: petroleum.gov.gy; Gas to Power Project Summary and Ministry of Natural Resources Qualification Proposals for Firms interested in Gas to Energy. Assumptions (since no official feasibility study document is available online):
1. Net power plant output at substation: 250MW
2. Pipeline cost: approx.US$1.3B. https://guyanabusinessjournal.com/2023/12/exploring-guyanas-game-changing-gas-to-energy-project
3. Gas supply cost for 20 years: US$0 (hopefully, a small compensation for the 2016 Production Sharing Agreement with the Gas Supplier.!!!)
4. Economic life span of a GPL power plant: 20 years. Guyana Power & Light (GPL) Development and Expansion Programme 2021 -2025
5. Gas power plant and gas liquids plant including substation at location: approx.US$759M. https://guyanabusinessjournal.com/2023/12/exploring-guyanas-game-changing-gas-to-energy-project
6. Interest rate for loans: assume 3%
7. Consultancy fees: Approx. US$22M
8. Additional transmission lines & substations: approx.US$159M
9. Plants operating cost: assume US$120M for economic life span
9. Miscellaneous: US$150M.
Economic life span costs for the project: approx.US$4B. “Ballpark estimate” cost per kwh: US$0.13 or 13 cents assuming pipeline transport and gas cost is $0, the gas is supplied at no cost. Note: No official feasibility study document is available online
Sincerely,
Gary Sampson
