The Government of Guyana (GOG), through the Ministry of Natural Resources, is currently reviewing Expressions of Interest (EIOs) for a model aimed at monetizing the country’s gas assets. This is according to the People’s Progressive Party’s (PPP) General Secretary and Vice President (VP) Dr. Bharrat Jagdeo.
Dr. Jagdeo announced during a recent press conference at Freedom House, Georgetown, that after thorough evaluations, the ministry will recommend a preferred group to the cabinet from among the submissions.
“We will then initiate a meeting, a tripartite meeting with that group, Exxon Mobil, and the Government of Guyana to discuss how we can move forward as quickly as possible to monetize the gas,” Dr Jagdeo stated.
In October 2023, a draft of the Guyana Gas Monetization Strategy was released, initiating public consultations to gather input. Subsequently,
in January 2024, President Dr. Mohamed Irfaan Ali outlined the government’s intent to fast-track the monetisation of Guyana’s estimated 17 trillion cubic feet (tcf) of gas resources.
“We have IHS Markit now working with us on doing a strategy. I saw elements [in] the issue paper that came recently and I said, if they do what they want to do, it will take a very long time, because you’re getting into, almost trying to monetise the gas on your own. The document would do a lot of technical work, since we’re hoping that this is going to be driven by the private sector, the government will not invest in it,” Dr Jagdeo informed reporters.
To this end, he underscored the importance of an investor-driven approach, highlighting the need for a comprehensive strategy conducive to attracting investment and maximizing revenue.
“That is why we don’t need to do all the detailed technical work. This should be done by the parties that want to develop the project… if you do all that detailed technical work, it might tie you to a particular approach on monetizing the gas, that we don’t know would be the best approach that the investors want,” he said, stressing the need for a comprehensive strategy that creates a supportive environment for monetising gas assets.
The government’s strategy aims to leverage gas resources for various purposes, including power generation, methanol production, liquefied natural gas (LNG), ammonia/urea, and blue ammonia/hydrogen. With an estimated 17 trillion cubic feet of recoverable gas resources in the Stabroek Block, the potential for economic development and energy diversification in Guyana is substantial.
As Guyana continues to assert itself as a key player in the global energy landscape, the government’s focus on gas monetization reflects its commitment to sustainable development and economic prosperity. ( Information taken from DPI)
