The Government of Guyana has affirmed the integrity of its selection process for Fulcrum LNG to spearhead the country’s gas development projects, emphasizing that the decision followed a rigorous and transparent evaluation.
Despite concerns regarding the Chief Executive Officer (CEO), Jesus Bonchalo being of a former senior employee of ExxonMobil, the Ministry of Natural Resources (MNR) in a recent statement has noted that there is no conflict of interest that could undermine the project.
Fulcrum LNG is a US-based company involved in the liquefied natural gas (LNG) industry. The company specializes in the development, construction, and operation of LNG infrastructure, including facilities for the production, transportation, and storage of natural gas. It provides comprehensive solutions for gas monetization and energy projects, focusing on efficiency, safety, and environmental sustainability.
Addressing recent public queries, the MNR highlighted that the choice of the company was made through a comprehensive and independent review process. The ministry assured that the evaluation team, established specifically for this project, meticulously assessed all proposals, and Fulcrum LNG emerged as the most responsive and compliant bidder. The selection process adhered strictly to the principles of fairness and transparency, aiming to secure the best possible outcome for Guyana’s energy future.
In August 2020, the current administration set a clear agenda to develop Guyana’s gas resources, starting with the gas-to-shore project. This initiative aims to reduce electricity costs by 50% and spur economic growth in the industrial and manufacturing sectors. However, recognizing the need for a broader utilization of the gas reserves, the government said it initiated discussions with ExxonMobil and its partners to explore opportunities for monetizing these resources.
It said once it became evident that developing the gas resource was not an immediate priority for ExxonMobil, the government sought an independent third-party operator capable of driving this critical project. A Request for Bids (RFB) was issued in early 2024 to identify a qualified developer to design, finance, construct, and operate essential gas infrastructure. This infrastructure is crucial for connecting and monetizing upstream gas, ensuring that Guyana can fully capitalize on its natural resources.
The bidding process attracted substantial interest, with 52 registered bidders and 17 formal submissions. The proposals were rigorously evaluated by an independent team, which scrutinized both the technical and administrative aspects of each submission.
The ministry said Fulcrum LNG stood out among the bidders due to its detailed and comprehensive proposal, which demonstrated a structured approach to gas development. The company’s bid was deemed the most compliant and responsive, aligning perfectly with the government’s vision for the sector.
Fulcrum LNG’s submission also outlined a clear plan for developing the necessary infrastructure, and its proposal was considered technically sound and well-suited to Guyana’s needs.
Upon completing the evaluation, the MNR submitted the report to the Cabinet. After careful review, Cabinet endorsed the selection of Fulcrum LNG, granting the MNR the authority to engage the company in project discussions alongside ExxonMobil. These preliminary discussions are currently underway, marking the beginning of a significant development phase for Guyana’s gas infrastructure.
Furthermore, the ministry clarified that Bronchalo’s involvement with Fulcrum LNG was known during the evaluation process and that his former association with ExxonMobil does not constitute a conflict of interest. Bronchalo has severed all ties with ExxonMobil, ensuring that his current role does not influence or bias the project in any way.
