Government, Lindsayca/CH4 move forward with arbitration

The International Chamber of Commerce (ICC) will be the arbitrator in the dispute between the Government of Guyana and Lindsayca/CH4 (LNDCH4), the US contractor building the ground facilities for the upcoming Wales Gas-to-Energy project.

Despite the differences between the two parties, pertinent work to facilitate the project is currently underway, as both the government and the contractor have committed to the speedy but safe development of the transformative energy facility.

A statement from the government today said that in the dispute under the Engineering, Procurement, and Construction (EPC) contract, both the government and the contractor have expressed dissatisfaction with each other, signalling their intention to initiate arbitration in the matter.

The arbitration will be administered by the International Chamber of Commerce (ICC), with the venue in Washington, D.C., pursuant to FIDIC’s Dispute Avoidance and Adjudication Board (DAAB), the statement highlighted. It further noted that all DAAB decisions in this matter are confidential.

Notwithstanding the disputes, both the Government of Guyana and LNDCH4 recognise the strategic importance of the project to the Guyanese economy. The contractor has resumed onsite activities, including piling, and preparations for foundation work are imminent.

Construction of a cement batching plant is underway, steel for foundation work has been delivered to the site, and a man-camp is being established, with more than 170 workers currently mobilised.

Upon completion, the project is expected to substantially lower electricity generation costs, enabling Guyana Power and Light Inc. (GPL) to reduce tariffs by up to 50 per cent.

This reduction has significant implications for the Guyanese economy, fostering more competitive production costs and stimulating broader economic growth.

The statement explained that ExxonMobil Guyana Limited (EMGL) has already finished constructing the gas pipeline, and the transmission lines and substations required for the integration of the project are significantly advanced, with completion anticipated by mid-year.

Despite the pending arbitration, both parties remain committed to expediting the power plant and natural gas liquids (NGL) plant, aiming to ensure the timely relocation of the gas and steam turbines, which are already in Guyana, to the Wales site.