GEORGETOWN, April 8 Reuters Guyanas efforts to use its natural gas resources to fuel a power plant that would slash the South American nation39;s energy costs have snagged on construction delays and threaten to curtail the rising oil hotspot39;s revenue this year by about 1 billion.

The 1.9 billion gastopower project, Guyana39;s biggest effort to capitalize on its energy bounty, is embroiled in legal fights and risks cost overruns. The first phase of a 300megawatt MW power plant is running six months behind schedule and full operation is not expected until the fourth quarter of 2025, officials have said.

Exxon Mobil, which operates all the oil and gas production in Guyana, is building a 140mile 225km gas pipeline from its offshore Stabroek block to supply the government39;s project onshore a power plant, a related natural gas processing facility and transmission lines.

The U.S. oil major39;s part of the project, the about 1 billion pipeline, will be ready by yearend as promised to Guyana, said Exxon Guyana country manager Alistair Routledge. That is despite having nothing to connect it to onshore because of delays on the works managed by the government.

The Stabroek block, site of the country39;s first commercial oil and gas discovery in 2015, currently produces crude about 645,000 barrels per day bpd. The new power plant will be the first to use the associated gas produced from the oil field that to date has been reinjected underground.

The gas pipeline completion…