GEORGETOWN – In a landmark step toward energy diversification, Guyana’s government and ExxonMobil have announced plans for a large-scale natural gas development poised to fuel domestic industry and potentially position Guyana as a future gas exporter. Dubbed the “Wales Gas-to-Energy” initiative, the project will bring gas from Exxon’s offshore fields ashore to power new electricity plants and industrial facilities. “This is a game-changer for our energy future,” President Irfaan Ali said at a Georgetown energy conference, hailing the plan as a pillar of Guyana’s economic modernization.
ExxonMobil’s country chief Alistair Routledge outlined the vision: Gas currently being produced in association with oil at the Stabroek Block will be funneled through a 225-km pipeline – completed last year – to a processing facility at Wales on the West Bank of the Demerara. There, a government-owned power plant and liquids separation plant are under construction to generate cheaper electricity and liquefied petroleum gas (LPG) for local use. “First gas” output is expected by 2025-2026, officials said, finally harnessing a resource that was previously being re-injected or flared offshore. Energy Minister Vickram Bharrat noted that enough gas has been found to supply 250 megawatts of power, slashing Guyana’s electricity costs by an estimated 50% once the plant is operational. For consumers and manufacturers long burdened by high power prices, this promises significant relief.
In addition to domestic power, Exxon and its partners – Hess and CNOOC – have bigger plans for gas. The project includes a proposed liquefied natural gas (LNG) facility, to be built by U.S. firm Fulcrum LNG, that would process part of the gas into LNG for export. Exxon is also studying separate pipelines to transport its share of gas to this LNG plant, which could ship fuel abroad and supply gas to Guyana’s eastern Berbice region for industrial use. One potential outcome is local production of fertilizers and other petrochemicals, leveraging gas as a feedstock. “We’re ready to deliver gas to shore,” Routledge affirmed at the conference, emphasizing that gas development will complement Guyana’s oil bonanza by opening new revenue streams and reducing reliance on imported diesel for power.
The PPP/C government has aggressively pushed this gas agenda, calling it a transformative opportunity. Vice President Bharrat Jagdeo, a key architect of the project, stresses that stable, affordable energy will spur investments in manufacturing, agro-processing, and mining. Indeed, anticipation of cheaper power is already attracting interest – just this week a foreign consortium announced plans for a glass factory and other downstream ventures contingent on gas power supply. President Ali highlighted the broader development: “This will create thousands of jobs and stabilize our grid while cutting emissions by moving away from heavy fuel oil.” Notably, by utilizing gas that was previously flared, the project reduces greenhouse emissions and aligns with Guyana’s Low Carbon Development Strategy.
Opposition leaders have raised questions about the project’s cost – now estimated around US$2 billion – and urged transparency in contracts. They also caution about environmental risks of onshore gas processing. In response, the government has subjected the plans to environmental assessments and set up a multi-stakeholder oversight committee. Thus far, momentum is strong. Construction of the pipeline and gas plant is well advanced, with major components already en route to Guyana. Financial analysts say the gas project, once online, could save Guyana hundreds of millions annually in fuel import costs and unlock new high-value industries. For a nation on the cusp of an economic leap, the ability to power that growth from its own natural gas is a timely boon. As President Ali put it, “We’re not just an oil producer now – we’re investing to become an energy leader in every sense.”
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