Guyana poised to be powerhouse in Caribbean’s energy security – Pres Ali

…says country ready to supply LPG, LNG to region

With the Caribbean now heightening focus on energy security in order to reduce its reliance on imported fossil fuels and lower high electricity costs, President Dr Irfaan Ali believes that the energy needs of the region can be met within as Guyana positions itself to be a major supplier. The Guyanese leader made this remark during a recent engagement while in St Kitts and Nevis, where he travelled last week for the 50th Heads of Government Conference of the Caribbean Community (CARICOM).
Addressing the Guyanese community in St Kitts on Friday, President Ali spoke about the unprecedented transformation in Guyana led by its burgeoning oil and gas sector – a development he says must transition to the prosperity of the region, especially in the area of energy.
“Our energy strategy is also linked to ensuring that we have energy security in this region, ensuring that when we proceed to LPG (Liquefied Petroleum Gas) and LNG (Liquefied Natural Gas), our off-takers would be the people and the countries in this region, and that the energy security of the region can be met from within the region,” the Guyanese leader stated.
As part of its efforts to transition from heavy fuel oil to cleaner energy, the Guyana Government is currently undertaking the highly anticipated Gas-to-Energy (GtE) Project at Wales, West Coast Demerara (WCD), utilising natural gas that will be piped onshore from oil operation activities in the Stabroek Block offshore Guyana. Under this project, a 300-megawatt (MW) combined cycle power plant and a Natural Gas Liquids (NGL) facility are currently being constructed and set to deliver clean and reliable power at a cheaper cost when they come into operation by yearend.
Already, some 250 kilometres (km) of 12-inch pipelines have been laid to bring the gas onshore. This first phase, however, will only utilise 40 per cent of the pipeline’s capacity, bringing 50 million standard cubic feet per day (mmscfd) of dry gas onshore. But with the pipelines having the capacity to push as much as 120 mmscfd of gas, the Government had moved ahead with Phase Two to utilise the remaining 60 per cent capacity of the pipeline, which will see an additional 75 mmscfd of rich gas brought onshore to power a second 300 MW power plant and NGL facility right at the Wales, Region Three (Essequibo Islands-West Demerara) location.

Five companies have been prequalified for GtE Phase Two and are expected to submit their proposals this month to the Government to design, finance and operate the second project. The GtE Phase One and Two are expected to generate significant excess ‘lean gas’ which will be available for other industrial projects such as fertiliser production, a data centre and a gas bottling plant. In fact, only last week, 10 international and regional companies, including a Guyanese business, submitted proposals to design, build and operate a cooking gas bottling facility at Wales. Currently, another invitation is out for Requests for Proposals (RFPs) for the Guyana Ammonia and Urea Plant (GAUP) – the deadline for which is March 5.
Outside of the GtE initiative, the Guyana Government is also laying the foundation for a broader energy economy with a second massive gas project in Berbice, Region Six (East Berbice-Corentyne). United States (US) energy firm Fulcrum LNG Inc. has been selected to develop a potential gas project in a tripartite arrangement with the Guyana Government and US oil major ExxonMobil, which is operating the prolific Stabroek Block offshore Guyana.
The Government has already touted large-scale industrial projects such as power plants, data centres and alumina plants, among other heavy industries, for the Berbice Gas Project – an initiative that will be separate from the GtE Project at Wales. With these resources, Guyana is keen on establishing a regional energy corridor. In fact, President Ali declared at the Guyana Energy Conference and Supply Chain Expo (GECSCE) recently held in Georgetown that his Government is eager to partner with Suriname on developing the neighbouring country’s natural gas resources.

Like Guyana, Suriname is also on the verge of a major offshore oil and gas boom resources. with first production expected by 2028.
And according to President Ali, Guyana is looking for “like-minded partners”, as he directly appealed to Suriname to join Guyana in scaling up the second gas initiative planned for Berbice. “If you look at what we are doing, you will see that we are on that path of integration. For the Berbice Gas Project, we want to do this with our friends in Suriname, and we are hoping that our friends in Suriname can take the decision to join us by bringing their gas with our gas so we can move from a medium-sized project to a larger-scale project for both of our countries and for the region,” the Guyanese leader noted at the opening of the energy conference just last month.
President Ali revealed that discussions with Suriname are already underway, emphasising the need for decisions to be made in a timely manner in order to lock in investors. “We are hoping that very quickly we can have some decisions because our investors are waiting for those decisions, and those decisions are critical for your future and our future. We want this partnership. We want that, just like we are partnering with our friends in Roraima and Brazil on transport and logistics and the food partnership, we want that partnership [with Suriname],” the Head of State had noted.
Meanwhile, during the energy conference, the Ministers responsible for the energy sectors in Guyana, Suriname and Trinidad and Tobago have all called for the strengthening of cooperation among the three nations. In addition, President of the Caribbean Development Bank (CDB) Daniel Best, during a presentation at the energy conference in Georgetown, had recognised Guyana’s ability to lead the Caribbean’s energy transition in a climate-smart and future-ready manner.