Guyana: Patterson Comments on Power Ship Negotiations and Government’s Position

Former Minister of Public Infrastructure David Patterson has commented on the government’s negotiating position with a power ship operator, indicating that there may be limited room for resistance to the operator’s demands. This statement follows the emergence of a leaked document that suggests ongoing discussions regarding contract extensions.

The document, which was not officially released by the government, appears to be correspondence dated May 25, 2026, from Karadeniz Powership Yasin Bey Company Limited and Urbacon Concessions Investments W.L.L. to the Ministry of Public Works. The letter, addressed to Minister Deodat Indar and copied to GPL Executive Management Committee Leader Kesh Nandlall, discusses the expiry of a power ship time charter agreement on May 21, 2026.

According to the document, the company has continued to generate power beyond the original expiry date and had previously accommodated an extension in good faith. The Ministry reportedly requested an additional 30-day extension to finalize renewal discussions; however, the company indicated it could not meet that request. Instead, it offered a final extension until June 1, 2026, to ensure operational continuity.

The leaked correspondence also urged for expedited negotiations and approval processes to prevent any operational interruptions. In response, Patterson noted that the company is likely aware of Guyana’s reliance on its power generation capacity, which limits the government’s bargaining power. He stated, “The company knows that they have the government’s back against the wall.”

Patterson highlighted that if the company were to withdraw its supply, it could significantly pressure Guyana’s power system. He mentioned that the current peak demand is approximately 205 megawatts, while GPL claims available power could reach around 250 megawatts if all units are operational. However, he warned that removing the power ship’s supply would reduce available capacity close to national demand, leaving only a narrow reserve margin.

He expressed concerns that this situation could become particularly challenging during periods of high electricity usage, such as major sporting events and national activities. Patterson stated that without the power ship’s supply, Guyana would face significant challenges in meeting electricity demand.

Additionally, Patterson linked the situation to delays in the Gas-to-Energy project, emphasizing that the country remains dependent on emergency generation due to the project’s inability to deliver power to the grid. He noted that there is still uncertainty regarding when the Gas-to-Energy project will be fully operational and whether it will provide the anticipated reduction in electricity costs.

Patterson further claimed that the company is attempting to align the commercial terms of the smaller power ship contract with those of a larger contract, which could lead to millions of US dollars in additional annual costs. He estimated that the proposed increase could raise the annual cost of the existing contract from approximately US$22 million to around US$28 million, ultimately placing an additional burden on taxpayers.

He criticized the situation as indicative of poor planning in the energy sector, leaving the government in a weak negotiating position. The government has not publicly confirmed the authenticity of the leaked document or provided a detailed response to Patterson’s claims.

Source: hgptv.com