U.S. oil giant Exxon Mobil is set to expand natural gas production and supply in Guyana through a large-scale project unveiled on Wednesday, aligning with the government’s push to utilize more gas for onshore power and petrochemical industries.
The “Wales Gas Vision,” presented by Exxon’s Guyana head, Alistair Routledge, at an energy conference in Georgetown, will supply gas to multiple petrochemical and power projects via a $1 billion pipeline completed last year.
Under the plan, the Guyanese government will receive a portion of the gas extracted from Exxon’s Stabroek Block, transported through the pipeline for power generation and natural gas liquids production.
Additionally, a gas processing and liquefied natural gas (LNG) offshore facility is in the works, to be developed by U.S.-based Fulcrum LNG.
Energy Minister Vickram Bharrat told Reuters that Exxon may be responsible for constructing a separate pipeline system to transport the government’s share of the gas to Fulcrum LNG’s facility. The plant will support LNG exports and supply gas to Guyana’s Berbice region for fertilizer and alumina production.
While investment figures for the broader gas projects have not been disclosed, Bharrat noted that a full assessment of Stabroek’s gas resources is required before Exxon finalizes its development strategy. However, the government is confident that there is sufficient gas for commercial-scale projects.
Guyana is seeking to diversify its energy mix, currently dominated by oil, with natural gas playing a key role in new revenue streams.
“There will be a shift towards gas utilization and monetization,” Bharrat said, adding that the government plans to launch its comprehensive gas strategy this year.
The Exxon-led consortium, which includes U.S. Hess and China’s CNOOC, is preparing to ramp up gas output in the coming years, particularly through non-associated gas projects such as Longtail.
A final investment decision on Longtail, expected to be the consortium’s eighth project in Guyana and capable of delivering up to 1.2 billion cubic feet per day (bcfd) of gas, is anticipated next year.
Exxon is “ready to deliver gas” to shore, Routledge affirmed at the energy conference.
Meanwhile, Exxon’s fourth floating production, storage, and offloading (FPSO) unit, built by SBM Offshore and recently deployed from Singapore, is set to commence operations in the third quarter of this year.