-Jagdeo says, outlines strategic approach for monetising Guyana’s gas

THE Government of Guyana is making strides in its efforts to monetise the country’s natural gas resources, Dr. Bharrat Jagdeo, General Secretary of the People’s Progressive Party (PPP) has said.

During a Thursday news conference, he underscored the importance of diversifying financial streams for the people of Guyana.

“We made it clear to the public that we wanted to monetise the gas. Exxon was initially reluctant, arguing that the associated gas was needed for re-injection to maintain well quality,” Dr. Jagdeo stated. However, he went on to highlight that the government believes sufficient gas exists to support a project that could bring economic benefits to the country.

As global attention increasingly focuses on natural gas as a key transitional fuel, Jagdeo said the government had taken decisive action by initiating a Request for Proposals (RFP). This RFP aimed to identify a partner with the technical expertise to collaborate with both the government and Exxon in a tripartite arrangement to explore the feasibility of a gas monetization project.

Following the issuance of the public tender, Fulcrum, a relatively new player in the industry, emerged as the leading bidder after receiving high marks from technical evaluators.

According to Dr. Jagdeo, Fulcrum’s proposal stood out due to its claim of having access to substantial financing and established partnerships with large companies, making it a viable contender for the project.

“It’s not unusual to involve a startup in gas ventures. In the U.S., many fracking projects that grew to prominence began as startups. Fulcrum’s technical and financial capabilities will be tested as discussions progress,” Dr. Jagdeo said, reassuring the public that while the company is relatively new, it has the potential to deliver.

The potential applications of Guyana’s gas resources are wide-ranging, with possibilities including a floating liquefied natural gas (LNG) platform for export, the development of onshore industries like fertiliser production, or generating power for export to neighbouring Brazil. However, Jagdeo was quick to stress that the feasibility of these options would depend heavily on the availability of gas and the economic viability of the project.

At this early stage, Dr. Jagdeo remains cautiously optimistic but also realistic about the challenges ahead. “We’re not worried at this stage. The project is still being defined, and it’s possible it could be deemed unfeasible,” he said. In such an event, the government is open to exploring alternative options, including discussions with Suriname about a potential joint project leveraging the gas fields located near the border.

“We’re not putting all our eggs in one basket,” Jagdeo added, emphasising the government’s strategic approach to ensuring that Guyana’s resources are used in the best possible way for the benefit of its people.

As Guyana continues to develop its oil and gas sector, the outcome of this gas monetisation project will be watched closely, with the potential to shape the country’s economic future for decades to come.