-Guyana has been preparing its economy to withstand shocks, President Ali says

-highlights crucial need for oil refinery, other energy security infrastructure

GUYANA has been deliberately restructuring its economy to weather global shocks, President Dr Irfaan Ali on Thursday told the Georgetown Chamber of Commerce and Industry’s (GCCI) annual general meeting, insisting that resilience in the face of crises must be designed and not left to chance.

Addressing business leaders in the wake of mounting instability in the Middle East and its spillover effects on global energy and trade, Dr. Ali warned that the world was entering a “frightening” period of disruption driven by attacks on critical infrastructure and chokepoints in international shipping routes.

He condemned recent strikes on energy facilities in Qatar, the United Arab Emirates and Saudi Arabia, stressing that the damage would not be quickly reversed.

“We also condemn the attack on critical infrastructure in the Gulf, in Qatar, Kuwait in Saudi Arabia, that will have long term impact and implications for global trade,” the President said.

Much of the pressure, he noted, centres on the Strait of Hormuz, which he described as “an important trading location,” especially for petroleum products and natural gas.

Here is where about 20 to 25 per cent of the world’s total seaborne oil trade passes through.

Attacks and disruptions in the Gulf have already led to sharp price movements and supply shortfalls.

According to President Ali, “over the last couple of days, 17 per cent of energy capacity has been affected, dismantled and can be considered lost.”

He pointed too to a 25 per cent jump in fertiliser prices and rising fuel and freight costs, warning of cascading consequences for food security and global manufacturing.

“And this is coming off the back of COVID and the Russian-Ukraine conflict. So, the situation is frightening ahead of us, the damage and energy infrastructure in Qatar, with UAE and Saudi Arabia alone. So far, it is estimated that to repair and restore those damages will take about five years,” the President explained.

He further linked these developments to a wider vulnerability in the global energy system, noting that the Gulf oil output had fallen from 21 million barrels per day to 14 million barrels per day while only about 3.5 to 5 million barrels can be rerouted through pipelines.

“That is how important the Strait of Hormuz is in this equation,” the President stressed.

The head of state reminded too that at the same time, 20 to 25 per cent of global energy comes from natural gas, most of it located in countries with substantial manufacturing capacity.

“We also know that natural gas is key for petrochemicals, and petrochemicals is key for plastics, fertiliser, pharmaceuticals, synthetic textile and helium, which is important for the cooling of super batteries in semiconductors. So that has to give you an understanding as to how this entire global system is affected.”

“This is a massive disruption, and that is why we support every effort to have the Strait of Hormuz open and functional and every effort in bringing the war to an end,” he added.

SELF-RELIANCE

For Guyana, President Ali noted that these external shocks underline the urgency of building self-reliance, regional cooperation and a more secure energy platform.

“We cannot continue to look beyond our hemisphere for solutions when we have so much resources within the Western Hemisphere, if we are to really secure a sustainable future for ourselves.”

The President said current realities highlight now more than ever how crucial it is for Guyana to strengthen its energy infrastructure.

He warned that the country could not rely on just these fiscal fixes. Instead, he argued, Guyana must press ahead with structural projects designed to permanently reduce exposure to volatile fuel imports, particularly the gas-to-energy initiative.

He told stakeholders that the country must move ahead with key plans for an oil refinery, a second gas plant and deep-water port.

“If we can have greater, bigger capacity coming in, then we will always be shooting in the dark,” he added: “Now I believe we should return to the conversation of a refinery for national security.”

Turning his attention to domestic policy, President Ali underlined the scale of the government’s current interventions to cushion households and businesses from spiralling energy costs.

“We are fortunate to the extent that soon our energy will come from our own gas, natural gas. We’ll have cooking gas, refined gas that we will have control over the prices and supply and, of course, the safety of the transport and logistic link,” he explained.

“Later this year, when the gas and energy project come on stream, we’ll begin to see the tangible benefit of that vision,” he added.

STABILITY AND PARTNERSHIPS

Dr. Ali noted that the government’s economic philosophy has been built on ensuring sustainability for the future.

“We understand the simple truth, and that is that stability is not accidental, it is engineered,” he declared adding: “And we’ve been preparing our economy as best as possible to withstand such shocks.”

Looking ahead, he urged the business community not to be paralysed by global uncertainty, pointing to planned investments in gas-based energy, fertiliser production, a deep-water port, data centres and agro-industrial projects.

“My message to you, therefore, is simple and clear. Move full steam ahead. Invest, expand, innovate, take advantage of the opportunities that are unfolding before us, because even in face of global uncertainty, Guyana remains a land of immense promise,” the head of state said.