…VP confident of US energy funding support as Trump begins 2nd term
With the recent election of former President Donald Trump to a second, non-consecutive term in the White House, it is not anticipated that the changing of the guard will pose problems for Guyana securing funding for energy projects, funding currently being sought from agencies such as the United States (US) Export Import (EXIM) Bank.
This was according to Vice President and People’s Progressive Party/Civic (PPP/C) General Secretary Bharrat Jagdeo, during a recent press conference, where he also expressed his congratulations for the election of Trump as the 47th President of the United States.
“We’re looking forward to working with his administration. We had a good working relationship with his previous administration and we’re looking forward to continuing that relationship and growing it. We believe the United States of America is a very close partner of Guyana and therefore we have to work to build that partnership continuously,” Jagdeo said.
Analysts have speculated on what a second Trump Presidency will look like, including what the next administration’s energy policies will look like. Reports are that the Trump administration will pave way for policies that prioritise fossil fuel development and roll back many climate-driven initiatives.
Guyana is currently seeking funding from the United States EXIM bank, for its transformative Gas-to-Energy (GtE) Project. According to Jagdeo, the PPP/C Government is looking forward to continuing its work with the US and the incoming Trump administration. He does not anticipate there will be any problems with securing funding for energy projects in Guyana from US sources.
“I don’t see any major change because on the production of oil and gas, we have not had any major differences with the US Government… In fact, I think we will have a good working relationship with his Government on this issue too. We do not anticipate any conflict,” the Vice President added.
Speaking about the way forward for the two countries, Jagdeo also noted that the Government will continue working to debunk “lies” being pedaled by opposition members and supporters in that country against the PPP/C Government, whenever they travel to the US.
“Every [US] Mission that comes to Guyana, they have a standard mantra. That is, the PPP is racist, the PPP is corrupt, the PPP is incompetent, the PPP squanders oil money and the PPP doesn’t like the US, (that) we are in bed with the Chinese…Of course, the facts are very different and we have been meeting with those officials to set the record straight,” Jagdeo further said.
GtE
Back in April 2023, it was announced that the Guyana Government had applied for the loan from the US EXIM Bank to finance the US$761 million GtE Project, which includes the construction of an Integrated Natural Gas Liquid (NGL) Plant and a 300-megawatt (MW) combined cycle power plant at Wales, West Bank Demerara (WBD), utilising natural gas from the country’s offshore operations in the Stabroek Block.
In September 2024, Finance Minister Dr Ashni Singh met with senior officials of the US EXIM Bank in Washington DC during which discussions were held on the loan. As part of its internal due diligence process, the US EXIM Bank hired two consultants to do the technical assessment of the project.
These works were done during site visits over the past year. In fact, back in June, President Dr Irfaan Ali had revealed that the feedback from those two assessments were positive. He said the teams found “no fatal flaws” from the technical and environmental due diligence work done here.
However, even as Guyana awaits the approval of this loan, Government has already spent some US$400 million on the highly anticipated GtE Project and could potentially fund the entire initiative if the request from the US EXIM Bank is not approved.
The Guyana Government had set aside a whopping $80 billion in Budget 2024 to advance the GtE initiative this year and its associated infrastructure, including transmission and distribution upgrades to offtake the power. As of the middle of 2024, the marine offloading facility has been completed, and 26 kilometres (km) of onshore pipelines are being installed by US oil major, ExxonMobil.
Meanwhile, Guyana’s petroleum sector is currently led by US Oil major ExxonMobil, through its local subsidiary Esso Exploration Production Guyana Limited (EEPGL), which is the operator of the Stabroek Block where the oil is being produced, and holds 45 per cent interest in the block.
Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
The Liza Phases One and Two and Payara Projects, all of which combined are producing over 600,000 barrels of oil per day, account for the three FPSO vessels operating in Guyana’s Stabroek Block in waters offshore. In addition, there are many American companies currently investing in the local economy including suppliers to the oil and gas industry as well as hoteliers. (G3)
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