Work on Guyana’s flagship US$1.5 billion gas fired power plant project and associated gas pipeline and gas processing facility has been delayed, with full completion not expected until late 2025, Reuters reports.

Originally planned to be completed this year in an attempt to satisfy an election pledge to reduce electricity prices by 50%, the delays have come about because of late equipment deliveries and problems with foundation works. There also appears to be some work involved in arranging the finance for the gas processing and power generation facilities, with the government of Guyana still seeking a US$646 million loan from the Export-Import Bank of the United States.

The US$1 billion, 225 km pipeline, which is being built by ExxonMobil, is on track, and is being financed by the oil and gas giant in return for proceeds from the country’s offshore oil and gas production over the next twenty years. Reuters further reports that 200 MW of the planned 300 MW capacity of the combined cycle power station should be online by mid-2025.