AT the recently concluded Guyana Energy Conference and Supply Chain Expo, ExxonMobil’s J. Hunter Farris, Senior Vice President – Deepwater, made a groundbreaking announcement that is set to boost Guyana’s energy security and earning power.

Speaking at the Marriott Hotel in Georgetown, Farris revealed that Exxon has identified additional gas resources that will more than double gas supply through the Gas-to-Energy pipeline, increasing from 50 million cubic feet per day to approximately 120 million cubic feet per day.

The Gas-to-Energy project is already set to transform Guyana’s power sector. The first phase, now expected to begin operations in 2026, will deliver 50 million cubic feet of gas daily from the Liza field offshore to the onshore Wales integrated facility.

This facility will include a 300-megawatt natural gas-fired power plant and a natural gas liquids (NGL) separation plant. Together, these plants will provide a more stable and reliable power supply, reducing the country’s dependence on heavy fuel oil.

With frequent power outages affecting businesses and residents, the project is expected to facilitate cutting electricity costs by half, making Guyana a more attractive destination for investment and industrial development.

Farris’ announcement is particularly important as it aligns with Guyana’s broader ambitions to expand energy security. The second phase of the Gas-to-Energy project will see the construction of an additional 300-megawatt power plant and a second NGL plant, by a contractor to be hired by the government, to make use of the additional gas.

This will not only double electricity generation from gas but also boost natural gas liquids production to approximately 9,800 barrels per day (b/d). The expanded power to be generated is crucial, given delays in the Amaila Falls hydropower project, which was initially being pursued to start operation in 2027 but has struggled to secure a development partner. The additional gas supply from Exxon will bridge the gap left by the delayed hydro project, ensuring that Guyana can meet its growing energy needs.

A key component of this expansion in gas supply is Exxon’s Hammerhead development, which is likely to be the primary source of the additional gas. Hammerhead, expected to begin production by 2029, once approved by government, is designed to produce up to 95 million cubic feet of natural gas per day alongside 180,000 barrels of crude oil.

While some of this gas will be used for fueling offshore operations and enhancing oil recovery at the Liza Unity FPSO site, a significant portion will be directed to the Gas-to-Energy pipeline. Exxon plans to install a pipeline connecting the Hammerhead FPSO to the Gas-to-Energy pipeline. This supply is critical for achieving the targeted 120-125 million cubic feet per day supply, as outlined by Farris.

This expansion will have considerable economic and environmental benefits. By shifting from imported heavy fuel oil to domestically produced natural gas, Guyana will reduce its carbon footprint while saving billions in fuel costs.

The country will also become more energy independent, reducing its reliance on volatile global energy markets. Additionally, with an anticipated surplus of natural gas liquids, Guyana can export more than 80 per cent of this production, while ensuring a stable and cheap domestic supply.

The Guyana Energy Conference, where Farris’ announcement was made, serves as a crucial platform for fostering discussions on investment, energy diversification, and economic growth. The annual event brings together government representatives, industry leaders, and international stakeholders to explore opportunities in and beyond oil and gas.

DISCLAIMER: The views and opinions expressed in this column are solely those of the author and do not necessarily reflect the official policy or position of the Guyana National Newspapers Limited.