Guyana’s chief oil sector strategist, Dr. Bharrat Jagdeo has led his government to yet another successful win for the local industry. With an unrelenting push for ExxonMobil to focus on gas, the US oil giant and its co-venturers, Hess and CNOOC, are now complying with a mandate to ensure Guyana has the gas resources needed to propel its development plans.
A recent publication by the Department of Public Information highlighted the ways in which Exxon and its partners will be unlocking gas to support Guyana’s future.
Gas-to-Energy project – Phase 1
For this project, ExxonMobil has committed to supplying 50 million cubic feet per day (MMcf/d) of gas from the Stabroek Block’s Liza field via a pipeline installed in 2024. The gas which will be piped to shore at a development site at Wales will feed a 300-megawatt (MW) power plant that will provide reliable and affordable electricity, significantly reducing Guyana’s dependency on imported fuels and allowing for a reduction in the cost of power by 50%. About 4,000 barrels per day (bpd) of Natural Gas Liquids (NGLs) will be extracted and utilized, supporting industrial development.
Gas-to-Energy Project – Phase 2
Building on Phase 1, ExxonMobil has identified additional gas resources from its Hammerhead project which can be used to increase the pipeline’s utilization to its full capacity of 120 MMcf/d. This expansion will incorporate a second power plant which will be developed, raising total generation capacity using natural gas from 300 MW to 600 MW. NGL output will grow from 4,000 bpd to approximately 9,800 bpd. The second phase is expected to begin several years after the first. The additional facilities could be constructed in two years. Proposals are expected to be opened for review in March. In the interim, Exxon has submitted key environmental documents for the Hammerhead project. They are currently under review by regulators and the general public. Once approved, it will mark Exxon’s seventh offshore project here.
Longtail Development
The Longtail project represents a major step forward in Guyana’s gas production strategy. In fact, it is the first development project by Exxon that is focused on gas not linked to oil production. Once approved, it will mark the eighth project in the Staroek block, producing approximately 240,000 barrels per day. It will also produce up to 1.2 billion cubic feet of gas per day (Bcf/d), a significantly larger quantity than the Gas-to-Energy Project.
Future Developments
Beyond Longtail, ExxonMobil has discovered significant non-associated gas reserves in the southeastern section of the Stabroek Block, particularly at the Haimara and Pluma fields. To date, the US multinational has outlined a potential plan to install an additional pipeline from the southeastern Stabroek Block to Berbice. It has proposed that an offshore floating LNG plant could be built along this pipeline route to facilitate gas exports. The pipeline’s onshore segment in Berbice could support major industries, such as a fertilizer plant, a data center, and an alumina facility, though these projects would be pursued by private investors.
The government has engaged Fulcrum LNG, a U.S. startup, as a potential partner for handling gas development, but no definitive agreements have been reached yet.
Overall, the Government of Guyana has played a central role in shifting ExxonMobil’s focus toward natural gas production, ensuring that the country’s vast resources are utilized for economic diversification. This will be guided by a gas monetization strategy that is being drafted by consultants. Through constructive engagement with investors and strategic policymaking, Guyana is facilitating projects that will support industrial growth, job creation, and a better life for all its people.
