Oil hotspot Guyana is forging ahead with talks for a refinery to meet local demand, according to the country’s President Dr. Irfaan Ali.
In a Facebook ‘Tea on the Terrace’ video, President Ali said his government is pursuing key long-term investments that would help insulate the country from external shocks such as the trade disruptions resulting from conflict between Iran and the United States of America.
Those investments include a natural gas plant and a gas bottling facility, both ventures that will utilise the natural gas found offshore. By harnessing this abundant natural resource, the President believes Guyana will be better able to control the cost of gas and fertilisers, while guaranteeing that industrial and manufacturing opportunities remain viable.
An oil refinery to meet local demand is another venture being seriously considered.
“... now we are in serious discussions back to have a refinery here in Guyana for national security and a fertiliser plant for national and regional security,” President Ali said on Wednesday.
The Head of State also said he engaged the President of the Dominican Republic and other stakeholders to “come up with a plan” to move the venture ahead.
In 2023, Guyana and the Dominican Republic (DR) signed a Memorandum of Understanding (MoU) to establish a new oil refinery in Guyana, and President Ali said then that the Spanish-speaking country’s role in the project increased its viability.
Through the MoU, a feasibility study for the 50,000 barrels per day oil refinery should have been conducted. The Dominican Republic will be the majority shareholder, with a 51 per cent stake. That country’s private sector is expected to partner with the Luis Abinader government to set up the facility and eventually, process oil produced offshore Guyana.
President Ali had told the News Room in 2023 that the Dominican Republic is set to become an “off-taker” of Guyana’s oil; that is, some of the oil produced offshore and refined in Guyana, will be shipped to the country for use.
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