RECENT announcements by the government that it’s moving forward with plans for potential gas development, and going out to tender for the establishment of a Natural Gas Liquids (NGL) facility, point to Guyana’s growing gas potential and the significant impact this will have on the country’s economic development.

Last week, President Irfaan Ali announced that Fulcrum LNG will partner with ExxonMobil Guyana Limited to implement a gas development project offshore. He also announced the government’s plans to advertise for a storage facility and a marketer for NGLs, as the landmark Gas-to-Energy (GTE) project is set to come on stream in 2025.
Fulcrum was among 17 firms to submit proposals to the government in February, to design, finance, construct and operate essential gas infrastructure to support the gas development. President Ali said the tri-partite partners will now have to have discussions and develop a plan as to how the major gas development in the country will be advanced and further secure the country’s footprint in the energy market.
As it relates to developing an NGL facility, the potential benefits are huge. NGLs are also known as petrochemical feedstocks because they can convert into many valuable materials for the petrochemical industry with many applications. Liquified Petroleum Gas (LPG) for instance, is a type of NGL with huge economic value. It is widely used for heating and cooking purposes in households and commercial establishments. Additionally, LPG is utilised in agricultural practices, such as crop drying, pest control, and powering machinery like tractors or irrigation pumps. It provides a reliable energy source in rural areas where access to electricity or other fuels may be limited. Most importantly, it is considered a cleaner-burning fuel option, emitting fewer greenhouse gases and air pollutants.
According to media reports, in addition to domestic use, Guyana aims to be a top NGL supplier for Brazil’s Roraima state, the Dominican Republic, and the Caribbean.
Importantly, to maximise the success of Guyana’s gas ambitions and realise its full potential, ensuring the right partners are onboard is essential, as was recently recognised by Vice President Bharrat Jagdeo. Speaking to the media last week, he said ExxonMobil Guyana has already signalled that gas development is a priority. He said the ‘best option’ would be to ‘have Exxon involved’ since they bring expertise and knowledge of Guyana’s gas resources to the table.
For its part, the company has said it is very lined up with the government’s intent and very supportive of the attempt to make gas a vital component of the future.
Exxon, Fulcrum, and a Guyana government technical team are expected to deliberate soon on the potential gas development project, with hopes for an agreement to be signed in 2025.
With very different options just a few years ago, Guyana from all accounts is now on an incredible journey, one not only fueled by its oil and gas resources, but the multiple industries that are set to emerge from its booming economy, driven by affordable energy.