Vice President, Dr Bharrat Jagdeo recently noted that a study will have to be conducted to determine whether sending Guyana’s gas to Trinidad and Tobago (T&T) is more feasible than other options for monetising the resource.
“They could add another option, which is, they should study whether taking it to Trinidad to be processed there makes sense,” Jagdeo said during his most recent press conference.
He was asked about sending Guyana’s gas to neighbouring T&T, in light of the United States’ move to revoke two licences it had granted to facilitate the development of offshore natural gas projects between the twin-island republic and Venezuela.
According to Jagdeo, while there were initial discussions with Trinidad and Tobago on whether Guyana’s gas could go to T&T, Guyana has since moved in a different direction.
Guyana has identified a private company, Fulcrum an American firm, to work alongside ExxonMobil Guyana Limited, the operator of the Stabroek Block and the government to monetise its gas resources.
He noted that several pathways are being considered. These include bringing the gas onshore to generate electricity and supply Brazil, using it for industrial purposes such as fertiliser and petrochemical production, or developing offshore LNG (liquefied natural gas) platforms for direct export.
The Vice President noted that the larger project to monetize Guyana’s gas is being privately executed. He explained, “But if this is all privately determined, then they look at the rate of return on each of these options, and then settle… which is the one that is in the ranking gives us the highest return?”
Jagdeo stressed that the ultimate decision on how to utilise the gas must be driven by economic and not political, considerations. He added that the decision must seek to maximize returns to the investor and to Guyana.
Further, he also reiterated that the government will not be using public funds to finance the gas development projects. “We’re not taking the people’s money and putting it in these projects. We just want them developed, so we can get a revenue stream to benefit our people,” Jagdeo added.
So far, he noted, Trinidad has not formally reached out to Guyana since the US license revocation.
