Home News Caricom countries will get 1st preference to buy excess gas from Guyana...
Once gas production exceeds local demand, the Caricom member states will be given the first preference to purchase the excess gas. This is according to Natural Resources Minister, Vickram Bharrat who said a number of those countries have already approached the government.
“Once we develop that and we have excess gas, obviously our Caricom partners will be persons who we will turn to and speak to because we’ve developed a good relationship through the chairmanship of our President at Caricom. CARICOM has been reenergised and revitalised and they’re looking to Guyana for support, especially from the oil and gas sector, so I don’t see us looking past our Caricom sister countries before we go to other countries,” he stated during a press conference.
The progressing Gas to Energy (GtE) project being undertaken by ExxonMobil in cooperation with the Government of Guyana will utilise gas from the Liza Phase 1 and 2 projects on the Stabroek Block, offshore Guyana. With an expected startup date of December 2024, the project will bring associated 50 million standard cubic feet of gas per day onshore.
However, other projects including Hammerhead and Longtail will eventually begin production. “We were told too that the longtail development will provide more gas than the other two development,” the Natural Resources Minister said.
Even so, he noted that the demand for energy is constantly increasing.
“The demand for energy will increase so we will require far more than the 300 megawatts in a couple years’ time. [Therefore,] It is a bit premature now to say who we can sell to and how much we can sell to them,” he noted.
Already, the government is looking at a second power plant to boost the local manufacturing sector and increase value-added exports.
The GtE project and any similar projects in the future will reduce the country’s high electricity cost.