…says country can save as much as 37% on fuel imports, facility more financially viable than local refinery
The People’s Progressive Party/Civic (PPP/C) Government’s decision to go in the direction of building a state-of-the-art fuel storage facility that could hold 750,000 barrels of oil, is one that will save Guyana as much as 37 per cent on costs for purchasing refined products.
This is according to Vice President (VP) Bharrat Jagdeo, during a University of Guyana (UG) Economic Society forum on Friday, where he answered questions persons may have on why Guyana has not gone the route of building an oil refinery so that the country can refine its own oil.
“It sounds popular. Why not build your own refinery? When you look at the numbers and the entire situation… so how can we satisfy our need for energy security, without doing that? That is why we’re exploring now, the building of these huge storage terminals in Guyana. So, you can bring large volumes of refined products and store them there,” Jagdeo said.
A fuel storage facility
“Nationally, we have maybe a month of storage. So, after a month, if you don’t get products, you start running out. So, two things that will happen: If we can bring the bigger vessels, by dredging and building these bigger storage facilities, we can cut the purchasing price of our refined products between 20 to 37 per cent.”
Jagdeo explained that the high price for importing refined fuel products, can be attributed to Guyana’s limited storage spaces, necessitating the need for more fuel trips. Additionally, the fuel also has to be imported in smaller quantities.
The VP also noted that while there are pros for a refinery, there are also cons. These cons, according to him, include increased emissions; the necessity of providing tax-concessions, and Guyana having to sell its crude to the refinery. Additionally, a viable refinery costing around $700 million would be privately owned, which means the state does not directly get revenue from its operations.
“We can sell our oil now and do pretty well in the global market. If we had to build a refinery? We went out to tender and a number of people wanted to build the refinery. There are some challenges. We wanted to do it from the perspective of energy security for Guyana.”
“So, we could have our refined products here and if there is any problem around the world, we could supply our domestic market. But against that, there’s some other trade-offs. We have to examine the pros and cons. This is one thing we do every time we make a policy. That’s why we’ll never implement a policy if we can’t defend it,” he added.
Guyana’s oil production began on December 20, 2019, and has since propelled the nation into a major oil-producing country. ExxonMobil, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), holds a 45 per cent stake in the Stabroek Block, while Hess Guyana Exploration Ltd and CNOOC Petroleum Guyana Limited own 30 per cent and 25 per cent, respectively.
In February 2025, during the opening of the 2025 Guyana Energy Conference and Supply Chain Expo (GECSCE) President Dr Irfaan Ali had announced a new fuel terminal infrastructure project in partnership with Curlew Midstream.
Curlew Midstream, a United States (US)-based energy infrastructure provider headquartered in Bentonville, Arkansas, operates terminal facilities in South Louisiana, and will play a key role in facilitating fuel trade between the US and Guyana.
It had also been announced earlier this year that Guyana is exploring a strategic plan to export its crude oil to the US for refining, with the aim of importing fuel for domestic use and potential regional distribution.
The Government’s consideration of refining crude oil in the US aligns with its broader strategy to enhance energy security, reduce costs, and create a more sustainable fuel supply for both Guyana and its regional partners.
