Guyana’s Next Gas Developments Hinge on Major Buyers and Industrial Roadmap

• Guyana’s next phase of natural gas development will depend on securing major buyers and establishing a clear roadmap for new industries, according to ExxonMobil Guyana President Alistair Routledge. Speaking at the Georgetown Chamber of Commerce and Industry (GCCI) energy luncheon, Routledge said ExxonMobil and the government are working to align offshore gas supply with potential industrial demand, infrastructure requirements and onshore investment opportunities.
• Routledge noted that developing a larger gas market requires offshore production, pipelines, industrial facilities and customers to be ready within the same timeframe. Unlike oil, which can be stored and transported relatively easily, natural gas requires specialised infrastructure and customers able to receive it as production begins. Investors also need certainty of supply before committing capital, while ExxonMobil needs sufficient demand to justify the associated pipelines and infrastructure.
• Routledge identified data centres, alumina smelting and additional power generation as potential sources of demand, adding that technical requirements also determine the minimum volumes of gas that must flow through a pipeline. The discussions form part of Guyana’s efforts to expand gas development beyond the Gas-to-Energy project at Wales, West Bank Demerara, which is intended to supply gas from the offshore Liza field to a 300-megawatt power plant and a natural gas liquids processing facility.
• The government plans to establish a second gas pipeline and industrial park in Berbice to support energy-intensive industries, including alumina processing, fertiliser production and data centres. ExxonMobil has estimated that the pipeline could cost US$2.00Bn or more. Routledge called for greater clarity on where facilities will be built, the land required and the location of supporting infrastructure, including port facilities, as well as the fiscal arrangements that would govern investments.
• He also emphasised the benefits of using Guyana’s natural gas domestically rather than focusing solely on exports, noting that exporting liquefied natural gas (LNG) would retain very little value in the country beyond the sale of gas. Bringing gas ashore, he argued, could generate more jobs, attract additional investment and support economic diversification through manufacturing and other industries. He identified the GCCI, the Private Sector Commission and other chambers as important partners in helping investors find local suppliers and business partners.
• The comments suggest that Guyana’s gas ambitions will depend less on resource availability than on coordinating demand, infrastructure and policy. Securing anchor buyers and clarifying the industrial and fiscal framework for the Berbice project will therefore be key to capturing more domestic value from the country’s gas resources. If realised, a gas-based industrial sector could broaden Guyana’s economy beyond crude oil exports, lower electricity costs for households and businesses, and create more skilled jobs and opportunities for local suppliers. Greater diversification would also reduce the economy’s sensitivity to oil price swings and support more balanced long-term growth. However, delays in aligning demand, infrastructure and fiscal terms could leave much of this value unrealised and reinforce the country’s reliance on oil revenues.

(Sources: OilNOW & NCBCM Research)