KEY POINTS
- Exxon plans large-scale gas expansion in Guyana.
- New LNG facility to boost exports and industrial growth.
- Government shifts focus to gas for power and economic benefits.
Exxon Mobil is moving forward with a major natural gas project in Guyana, aiming to expand the country’s gas supply and support industrial growth.
The initiative, announced Wednesday by Exxon’s Guyana President Alistair Routledge, aligns with the government’s push for increased gas use in power generation and industrial production.
Dubbed the “Wales Gas Vision”, the project includes infrastructure investments to support fertilizer production and petrochemical exports.
According to Reuters, the recently constructed $1 billion gas pipeline acts as a vital transportation link to move gas supplies to facilities situated on land.
The government plans to use part of the supply for its Gas-to-Energy initiative, which will enhance power generation and produce natural gas liquids.
The Exxon plans to construct new offshore processing and liquefied natural gas (LNG) facilities enabling Guyana to export LNG, while expanding its industrial operations in regions like Berbice.
Future expansion plans and investment goals
The Exxon-led consortium, which includes Hess Corp from the United States and CNOOC from China aim to substantially boost their natural gas output.
The Longtail project represents a prominent development in the expansion by producing up to 1.2 billion cubic feet of gas daily.
A final investment decision for Longtail is set for 2026, making it Exxon’s eighth major project in Guyana.
The oil giant emphasized that it is “ready to deliver gas” and fully committed to supporting Guyana’s growing energy needs.
Guyana’s Energy Minister Vickram Bharrat has verified government plans to use gas resources for monetary gain through strategy implementation scheduled for this year.
“We are taking a proactive approach to diversify our energy mix,” Bharrat said. “Gas will play a major role in powering our economy and opening new revenue streams.”
Economic impact and energy sector growth
Guyana’s energy industry is expanding quickly, as its fourth floating oil production platform constructed by SBM Offshore plans to begin production in the third fiscal quarter of 2025.
Guyana’s goal includes establishing proportionate oil production between oil and natural gas activities by maximizing its offshore riches, to strengthen its economic development.
The government seeks to strengthen its regional LNG market position through natural gas integration while delivering lower electricity prices and oil reduction benefits.
The latest Exxon commitment positions Guyana for long-term energy sector evolution, which strengthens its place as one of the world’s fastest-growing energy markets.
