Guyana is set to produce more than one million barrels of oil daily before the end of this decade and as it concretises oil production plans, the country is now majorly focused on harnessing its natural gas resources to generate cheaper electricity locally.So says the country’s President Dr. Irfaan Ali, who addressed the opening ceremony of the 2024 Guyana Energy Conference and Supply Chain Expo at the Marriott Hotel in Kingston.The President was frank; he said many have heard about Guyana’s oil story. Oil was found in 2015, production started in 2019 and ExxonMobil and its coventurers Hess and CNOOC are developing new projects steadily.He, however, said investors should now focus on how Guyana intends on maximising its natural gas resources.Already, a massive gas-to-energy project is being developed at Wales on the West Bank of Demerara (WBD). That project will bring natural gas in the Stabroek Block offshore Guyana (where ExxonMobil and its coventurers are producing oil) onshore via a pipeline and fire a 300 megawatt power plant at Wales.[caption id="attachment_176300" align="aligncenter" width="786"]
President Dr Irfaan Ali and PM of T&T, Dr Keith Rowley at the opening of the Guyana Energy Conference and Supply Chain Expo (Photo: News Room/February 19, 2024)[/caption]Aside from power generation, other products such as cooking gas should be produced.But that’s only a small part of Guyana’s natural gas development plants. President Ali described it as the “first phase” of natural gas development.With heightened investment interest, stemming from the prospects of cheaper energy costs, the President said there is enough demand for a second pipeline to bring more gas onshore.And what is possible?Several new projects can be developed and some are already in the works, the President disclosed.“The way we see this gas development unfolding is through which it will be highly-integrated into the investment and will be an important part of the deepwater port and the road to Brazil.“It will open up opportunities for transport and logistics,” President Ali said.[caption id="attachment_176301" align="aligncenter" width="816"]
President Dr Irfaan Ali and other officials at the ribbon cutting ceremony of the Energy Conference and Supply Chain Expo (Photo: News Room/February 19, 2024)[/caption]He later revealed that the new deepwater port could be built at New Amsterdam, in Region Six (East Berbice- Corentyne). Guyana’s oil refinery, should the government get a viable proposal, will also be built in this region.President Ali said this region is crucial because it can be an easier road link to Lethem, Region Nine (Upper Takutu- Upper Essequibo) which itself is a gateway to northern Brazil.In fact, he said a study done shows it takes only about five hours to get from New Amsterdam to Lethem. Current land travel routes from Georgetown to Lethem take over 12 hours.That road link and the deepwater port, the President added, would be a game changer.“You’re talking about a game changer for northern Brazil, a game changer for Guyana and a game changer for transport and logistics,” he said.Still apparently seeking to entice investors, the President also said bauxite development is another part of the gas “master plan.”[caption id="attachment_176299" align="aligncenter" width="832"]
President Dr Irfaan Ali and other officials at the opening ceremony of the Energy Conference and Supply Chain Expo (Photo: News Room/February 19, 2024)[/caption]With cheaper energy and a road connection (the Corentyne Bridge) to Suriname, Dr. Ali said Guyana can convert bauxite into aluminium through an aluminium plant.“A gold refinery is now viable and we are already seeing great interest in the establishment of a gold refinery in Guyana,” he said too.These newer ventures are only part of what is possible and what is unfolding, however. Guyana has the lead responsibility for food production within the Caribbean Community (CARICOM) and it has significantly expanded food production.Cheaper energy through the gas-fired power plant, the deepwater ports and a beefed up road network can all push regional trade, according to the President.As Guyana’s energy conference unfolds this year, it is expected that stakeholders will be discussing the energy sector in Guyana and opportunities for the region.
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