AS Guyana steps into 2025, the country will experience what is arguably the most dramatic economic transformation in a calendar year of its recent history. Several major projects, from energy to infrastructure and oil production, are set to advance and conclude. These will be catalysts for greater economic progress and social benefit.

The Gas-to-Energy project is set to be one of the most transformative projects in Guyana’s history. By harnessing offshore natural gas resources, the project will replace heavy fuel oil as the nation’s primary power source, reducing energy costs for consumers by 50%, cutting emissions, and achieving energy independence.

ExxonMobil will supply 50 million cubic feet of gas daily to power a 300-megawatt plant, while a natural gas liquids (NGLs) separation plant will produce 4,000 barrels of natural gas liquids per day (b/d), starting this year. This initiative will save Guyana millions annually from costly fuel imports, and unlock vast economic potential. Plans for Phase 2 of the Gas-to-Energy project will also advance this year, with intent to expand capacity to 125 million cubic feet per day, increase power generation to 550 megawatts, and boost NGL output to 10,000 b/d. This phased development positions Guyana well in pursuit of its goal to become a regional leader in energy production.

Another game-changer for 2025 is the completion of the US$260 million Demerara River Bridge, under construction by China Railway Construction Limited. The current double-lane floating bridge is decades past its lifespan, and struggles to meet the demands of increasing traffic between Regions Three and Four. The new four-lane, high-span bridge will eliminate traffic bottlenecks, support vehicles of all sizes, and allow uninterrupted traffic flow for both road users and maritime vessels. With a design lifespan of 100 years, the bridge will reduce transportation inefficiencies, and improve connectivity for businesses and commuters alike.

Oil production offshore Guyana is set to reach new heights in 2025. ExxonMobil’s Yellowtail project will commence production, adding 250,000 b/d to the nation’s capacity. Additionally, upgrades to the Liza 2 project are expected to increase production from 250,000 to around 270,000 b/d, pending regulatory approval. These developments will raise total production beyond 900,000 b/d, significantly increasing earnings for all parties—ExxonMobil, Hess, CNOOC, and the Guyana government. Meanwhile, work will also advance for ExxonMobil to seek approval for its Hammerhead and Longtail projects. Depending on the resolution of a dispute over Hess’ 30% stake in the Stabroek Block, a new oil major (Chevron) could enter Guyana’s oil sector.

The Local Content Act, enacted in 2021, has ensured that Guyanese businesses benefit directly from the nation’s oil wealth. Foreign operators are required to procure goods and services locally, generating hundreds of millions of US dollars annually. In 2025, the legislation will be updated to address loopholes, and expand the list of mandated categories, creating new opportunities for local businesses and workers.

These adjustments will deepen the integration of Guyanese citizens into the oil sector, and foster broader economic inclusion. Director of the Local Content Secretariat Dr. Martin Pertab has said that the inclusion of 20 new categories could boost annual earnings for locals by US$350 million.

Government will also table a National Oil Incident, Emergency Response, and Financial Responsibility Bill in Parliament, which will address responsibility for environmental damage caused by oil spills and other incidents.

Exploration activities are also set to ramp up. ExxonMobil will continue its exploration programme in the Stabroek Block, including focus on gas prospects and appraisals to finalise plans for its first potential standalone gas development. Meanwhile, Eco (Atlantic) Oil & Gas will drill an exploration well in the Orinduik Block, according to statements made in 2024.

While the oil-and-gas sector advances, earnings from 2024 will allow the government to withdraw more than US$2 billion from the Natural Resource Fund (NRF) to support its 2025 development agenda.