Guyana’s President, Irfaan Ali, is exploring a partnership with Suriname to develop a gas-powered industrial hub, aiming to diversify his nation’s economy, which has been rapidly transformed by oil wealth over the past decade.
The proposed hub, located on the northern coast of South America, would utilize natural gas from both countries’ offshore fields, Ali said in an interview. He emphasized that the initiative is part of a broader effort to “build regional prosperity” by producing power, fertilizer, and aluminum in Guyana’s Berbice region.
Speaking on the sidelines of the CERAWeek conference by S&P Global, Ali highlighted ExxonMobil’s 2015 oil discovery as a game-changer for Guyana, filling government coffers with billions from oil exports. However, he acknowledged that the nation’s economic future remains closely tied to volatile crude markets, making diversification essential.
With re-election approaching, Ali is focused on building economic “resilience” by investing in non-oil sectors such as agriculture, infrastructure, education, and healthcare. He sees the gas hub as a crucial step toward energy and food security, benefiting both Guyana and Suriname.
Gas Development Plans
Exxon’s Longtail project, its eighth offshore Guyana venture, presents a unique opportunity due to its emphasis on natural gas and hydrocarbon liquids rather than oil. Located southeast of the Stabroek block, Longtail is near Suriname’s GranMorgu oil project, led by TotalEnergies.
Exxon is set to present multiple gas development options to the Guyanese government in the coming weeks. These include bringing gas to shore via pipeline for domestic use or developing a floating liquefied natural gas (FLNG) facility for exports.
“This month, we’ll have a clearer understanding as additional studies are completed,” Ali said. “We’ll be narrowing down our options to move forward.”
During his Houston visit, Ali met with U.S. Energy Secretary Chris Wright to discuss strengthening energy partnerships and regional integration for greater energy security and stability.
Geopolitical Tensions
Meanwhile, tensions with neighboring Venezuela remain high. About ten days ago, Venezuela sent a patrol ship into Guyanese waters near Exxon’s oil vessels, following the U.S. decision to withdraw Chevron Corp.’s license to operate in Venezuela. The move was widely condemned by the U.S. and the international community.
“Our relationship with the U.S. administration is very positive, constructive, and forward-looking,” Ali said. “That’s why you’ve seen such strong statements against Venezuela’s incursion.”