— Routledge says gas-monetisation plans remain on the table
EXXONMOBIL has reaffirmed that the development of liquefied natural gas (LNG) remains a viable option for Guyana, with President of ExxonMobil Guyana, Alistair Routledge, restating the company’s commitment to unlocking the nation’s gas resources to power local industries and drive economic diversification.
“As we’ve looked at this with the government, we asked what is the highest value proposition for the country,” Routledge said during a recent episode of Starting Point.
“LNG has never been removed from the table. We continue to keep our aperture open as far as gas development and how to maximise the value of the nation’s gas resources until we can finalise the investment opportunities that deliver the highest value and secure contracts to execute those.”
According to Routledge, ExxonMobil has completed extensive studies on the southeast portion of the Stabroek Block to better understand the scope of resources and potential development pathways.
These studies evaluated two primary options — building a domestic gas market or exporting gas through pipelines or LNG infrastructure.
“As you know, Guyana doesn’t currently have a large-scale gas market,” he explained. “It has a market that uses bottled LPG for cooking, but it doesn’t have a methane market, a piped market, or major industrial uses as we stand today. So the options on the table are clear — we can either grow a domestic gas market or export the gas.”
Earlier this month, People’s Progressive Party (PPP) General Secretary and Guyana’s Vice-President Dr. Bharrat Jagdeo reaffirmed that the government remains steadfast in its goal to convert the nation’s associated gas to LNG.
The Vice-President said that the government is actively seeking private investors to partner with ExxonMobil in a tripartite arrangement, stating: “We want to make sure that the gas is utilised by Exxon. If they don’t want to move forward with the project, then we will explore other contractors who are interested.”
The Vice-President had previously stated, “So we made it clear at the beginning that when this project is being examined by all the parties that we have an open mind now as to the use of the gas that the most feasible use should be pursued. Anything that will monetise the gas, either for industry or for the people, will be a priority for us.”
He then said that the government has not taken this option off of the table, noting that LNG is one of those “very feasible options” and that could be done faster because it can be done through a floating platform.
In January 2024, President Dr. Irfaan Ali announced the government’s plans to accelerate the monetisation of the country’s gas resources estimated at 17 trillion cubic feet (tcf).
The government has since received Expressions of Interest (EIOs) for a model that will help Guyana monetise its gas assets.
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.
Guyana’s gas strategy includes several major projects designed to drive the energy transition and support industrial expansion, including the gas-to-energy project, Exxon’s Hammerhead project and the Longtail development, which is being actively considered.