Dispute over energy project in Guyana to be discussed through arbitration
GEORGETOWN, March 6 (Reuters) - An international arbitration court will hear a dispute between Guyana and a consortium led by U.S. firm Lindsayca over a project awarded to build a gas-fueled power plant and a natural gas liquids plant, the government said on Thursday.
The 300-megawatt power plant included in the project was expected to be inaugurated in the third quarter this year, but the consortium said it got access to the site late, which has delayed construction for about three months.
The International Chamber of Commerce will hear Guyana's government, Lindsayca and CH4 Systems over the delays, the energy ministry said in a release. The project is expected to lower electricity generation costs in the South American country.
"It started off with what they claim was a delay in handing over the site," Vice President Bharrat Jagdeo told Reuters in an interview last month, referring to the Lindsayca group's argument.
A consortium led by U.S. major Exxon Mobil (XOM.N), opens new tab that controls all oil and gas output in Guyana was responsible for building a pipeline to supply the gas that will feed the power plant. The $1 billion line was completed last year.
"Exxon was responsible for preparing this site... so they were delayed," Jagdeo added.
Despite the dispute, the transmission lines and substations linked to the power plant are "significantly advanced, with completion anticipated by mid-year," the ministry said in the release.
"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," it added.
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