https://www.kaieteurnewsonline...ce-with-fuel-supply/

Earlier this month, Guyana went to bed with shocking news…the state-owned Guyana Power and Light Inc (GPL) was low on Heavy Fuel Oil (HFO).
Several communities for a number of days had no power as GPL implemented scheduled outages because of the shortfall in generation that was triggered by the shortage.

Minister David Patterson

GPL’s CEO, Albert Gordon, and Management is under fire for low fuel earlier this month that led to power outages.

The story that is now coming out has pointed to significant mismanagement at GPL over the fuel situation.
Persons close to the Board and Management are now speaking out, claiming they were left in the dark.
They say that the supply of HFO for the bigger engines of GPL, although currently stabilised, is only temporary. A more medium term arrangement has to be secured, officials disclosed over the weekend.
Failure to arrest the situation would lead to more blackouts.
It was explained that GPL struck a deal with Suriname’s Staatsolie for HFO about two years ago.
All was going well until around September when the supplier told GPL that it was ending the arrangement, as it could not sustain the 30,000 barrels of HFO every 12 days. The company immediately reduced its supplies signaling intentions to end by December.
Staatsolie did offer GPL another option…pay them US$2 more on every barrel, and it would ship in the HFO from St. Eustatius, an island next door to St. Kitts and Nevis.
However, for weeks, there was no decision by the GPL management, including Chief Executive Officer, Albert Gordon.
While the shipping allowed GPL up to 17 days of fuel, the shortfall of HFO started to impact the operations of the power company.
The supply vessel would visit Kingston, and Vreed-en-Hoop and even head to Garden of Eden.
However, it appears that management never informed the Board of Directors of the fuel shortage situation.
GPL was forced to truck fuel from a number of fuel suppliers on the East Bank of Demerara, including Guyana Oil Company and Sol.
However, it was not HFO that GPL was acquiring. Rather, it was buying the more expensive Light Fuel Oil.
The faster-burning, more expensive fuel was also proving a major logistical problem for GPL- it could not get the fuel fast enough to the power plants.
By the time, the trucks offload their fuel and reach back to the suppliers on the East Bank, the fuel stock would run low.
Crunch time hit earlier this month and Minister of Public Infrastructure (MPI), David Patterson, learnt of the situation suddenly.
“There was deep anger by the Minister over the situation. The Board was not told. Management knew,” a source close to the company disclosed.
GPL had been forced to introduce a number of emergency Caterpillar sets, using the more expensive but accessible diesel, to ease the outages.
According to sources, GPL was forced to employ the use of police escorts for the trucks to its power stations- all the while nothing was being told to the Board.
It was disclosed that Minister Patterson called the Ministry of Foreign Affairs where an emergency call was made the Foreign Affairs officials in Suriname.
“They sent out an SOS to state that look we have this problem- the country is gonna shut down, and the Minister used some leverage. Staatsolie immediately agreed to send two vessels that weekend, earlier this month, averting what could have been an unthinkable situation.
“We have fuel now but it is still a touch and go situation. This situation could have been avoided had the relevant people been informed. Suriname is doing what they can, but situation is not good.”
In a statement earlier this month of the fuel shortage, GPL said it is experiencing a shortfall in generation as a result of an inadequate supply of HFO.
This has resulted from delays in delivery by the contracted HFO supplier.
“Consequently, we are operating some of our generating sets, which are dual fired, Heavy Fuel Oil (HFO) and Light Fuel Oil (LFO). Unfortunately, some of the generating sets are not achieving the expected output on the LFO.”
GPL said that the reduced output from the generators has adversely impacted the company’s ability to reliably meet demand.
“GPL expects to receive supplies of HFO this weekend, which will lead to an improvement in the situation. GPL apologises for any inconvenience that may be caused to our customers as a result of this temporary situation.
“The company will publish any areas that would be affected.”
The situation over the fuel came as news spread that GPL’s board on Friday met in an emergency session to discuss the sacking of two members.
Deputy CEO, Renford Homer and Bal Persaud, Human Resources Manager, were told this week by Gordon, a Jamaican national hired last year, that they were no longer needed.
The Board in reversing the decision said it was not aware of the decision sackings.
Homer had performed the duties of the CEO for months before Gordon was hired.
GPL is under fire to improve its performance and increase generation but it will take millions of US dollars for this to happen.