–President Ali says proposals being explored, eyes integration with Brazilian market
GUYANA is exploring proposals to expand its fuel-storage capacity as the country moves to establish itself as a regional energy hub, President Dr Irfaan Ali has said.
The Head of State made this disclosure during a recent press conference, in response to a question about whether discussions with Qatar had advanced on the construction of fuel-storage facilities.
Dr Ali said major players in the energy sector have been raising the issue, noting that Guyana’s growing energy profile makes additional storage capacity increasingly important.
“Every single major player in the energy sector has asked that very question, because Guyana is positioning itself naturally as energy hub in the region, we have a few proposals, as you know, in terms of our ability to store fuel not only for national demand and having greater reserves here, but also to integrate in northern Brazil market, that’s important,” he said.
He explained that the proposals being considered would cater not only for domestic demand and the need to maintain greater fuel reserves but could also support the northern Brazilian market.
According to President Ali, Guyana is examining a “hub-and-spoke” approach, where a main fuel farm would serve as the central storage facility, with smaller facilities established at strategic locations.
“The hub-and-spoke aspect of fuel farms, where you have the main fuel farm, and then you may have at Lethem and other places that are critical,” he said.
The President also pointed to the growing demand for electricity associated with major developments outside the national grid.
He noted that two gold mines could each require approximately 75 megawatts of power, creating opportunities for off-grid electricity generation.
President Ali had earlier this year pointed to the possibility of establishing large-scale storage facilities in Guyana with the capacity to hold several months’ worth of critical supplies, including fertiliser, which could serve regional and international markets during periods of disruption.
According to President Ali, Guyana’s geographic location, which offers a direct access to the Atlantic and proximity to major markets such as Brazil, places the country in a unique position to support global supply chains.
He added that the country’s trade arrangements within the region, coupled with its natural resource base oil, gas and gold could further strengthen its potential as a strategic logistics centre.
“I want to present Guyana as that location, that geographic location that can be a strategic storage location,” he said adding: “And why Guyana, our geographic location, our access to the Atlantic, our access to large markets in Brazil and the trade arrangement we have within our region. But importantly our ability also to add our natural assets, which includes gold, that includes crude oil [and] natural gas as part of that portfolio, in building out a strategic geo-positioning for this entire industry.
His comments at the time came following strikes on energy facilities in Qatar, the United Arab Emirates and Saudi Arabia and he used the opportunity to stress that the damage would not be quickly reversed.
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.
