The cooking gas market is currently valued at $10.1b and the local cost per 20lb cylinder of cooking gas is just around $4500. This price can further increase based on the oil and gas market. This increase has caused hundreds of citizens to complain and some have even suggested for the Government to tap in and provide the gas free of cost.
But while providing an outline of the Wales Gas to Energy Project on Thursday, President Irfaan Ali said a promise of free cooking gas is a pipe dream.
“That is unsustainable, that is fairy tale and take us nowhere,” he said.
However, he has assured Guyanese that the price for this necessity can be reduced significantly.
He said this can “deliver cooking gas at a price that would save $7b of what the market is now. That is $7b of savings going back to the household.”
Through this project, natural gas from the Liza Phase 1 project will be used to fire a power plant producing an average of 250 megawatt of electricity. A 12 inch pipeline will run over 200km transporting up to 120 million cubic feet of gas per day.
Additionally, he highlighted that this gas to energy project can see $20b being saved for electricity cost and GPL will be saving US $11m from fuel currently purchased.
The gas to energy project is expected to come on stream by late 2024. Once this begins the Government is hoping to significantly improve the ease of doing business in Guyana.