Guyana’s leverage to be boosted with gas to shore – President Ali

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Guyana’s leverage to be boosted with gas to shore – President Ali

Published: June 06, 2021

Guyana’s leverage to be boosted with gas to shore – President Ali

(OilNow) A significant reduction in the cost of electricity is not the only benefit that will be accrued from the Guyana government’s multi-billion-dollar gas-to-shore project slated for Wales on the West Bank of Demerara.

According to President Irfaan Ali, the project will provide the new oil producing country with leverage in spin off sectors thereby delivering more value and wealth to the citizenry.

During his featured address at the opening ceremony of Saipem Guyana’s latest waterfront facility, Ali said, “The gas-to-shore project is not only going to cut electricity costs by 50 percent, but also to migrate manufacturing and industrial development of Guyana and that by itself brings a whole fabrication industry with it.”

He said the project will increase opportunities for marketing, servicing, packaging, distribution, logistics, and that this is the macro-plan the government is looking at.

Already, he said, Guyana has seen an influx of cargo at existing port facilities, which now presents another area for major investment potential.

“We have to build a modern facility [which means] massive investment and that is a private sector opportunity, and these are the types of transformational things that will create new value,” the President continued.

Another major investment area, President Ali pointed to was agro-processing. In this regard, Mr. Ali said the emergence of a state-of-the-art agro-processing facility will create better opportunities and prices for local farmers.

Giving an example, the Head of State explained Guyana can leverage the high demand for shrimp in the Diaspora market in the United States. Already, he added, the government has invested over $370 million to increase the shrimp production and tap into that market and has also engaged with farmers on plans to increase livestock capacity with respect to quality and quantity.

“You have six new hotels that will require special cut meats and seafoods. This is the type of lead and leveraging that I am talking about,” the President stated. He concluded that Guyanese should not let these opportunities pass by but rather, take the necessary steps to monetize them.