Guyana, Suriname hold collaboration talks on shared gas project

– bauxite development, powering Northern Brazil among options on the table

Talks have commenced between Guyana and Suriname on the potential collaboration between the two neighbouring countries to jointly develop their respective natural gas resources.

Suriname is now forging ahead with its first offshore petroleum development project, which the Guyana Government had previously said opens up opportunities for the two nations to work together.
On the sidelines of the Guyana Energy Conference and Supply Chain Expo held in Georgetown last week, Vice President Dr Bharrat Jagdeo and Natural Resources Minister Vickram Bharrat met with Managing Director of Staatsolie – Suriname’s state-owned oil company, Annand Jagesar, on Tuesday last to discuss that potential collaboration.
“[We spoke about] exactly how we’re going to collaborate with them, share information [and] data based on our resources and to look at ways in which we can collaborate… The discussions will continue. Also, the Vice President has asked me to visit Suriname too to have a look at what systems they have in place and to see how we can collaborate even more,” Minister Bharrat subsequently told the Guyana Times.
That visit to Paramaribo, according to the Natural Resources Minister, is likely to happen within a month’s time. However, he noted that these talks are still in the initial phase.
“So, it’s still in the initial stages and we’re continuing discussions,” Bharrat posited.
President Dr Irfaan Ali has always been touting a regional energy corridor as Guyana moves to monetize its gas resources, which will be an independent project from the model Gas-to-Energy (GtE) initiative that is currently under construction at Wales, West Bank Demerara. The GtE project comprises a Natural Gas Liquids (NGL) facility and a 300-megawatt power plant utilising the rich natural gas from the Liza Fields in the Stabroek Block, offshore Guyana.
United States energy firm, Fulcrum LNG Inc., has been selected to work in a tripartite arrangement with the Guyana Government and ExxonMobil to develop a potential gas project.
The Guyanese leader had previously touted several projects that are being considered for this gas monetization plan, including the export of energy to Northern Brazil, a shore base facility, an additional power plant and a potential joint aluminium plant facility using bauxite from both Guyana and Suriname.
In fact, at Tuesday’s opening of the Energy Conference, President Ali reiterated the need for Guyana and Suriname to work together on building out the infrastructure to support a joint gas project between the two South American neighbours.
Similar sentiments were expressed by the Managing Director of Staatsolie during a presentation at the Energy Conference on Wednesday.
“We need to work together, it’s gonna be beneficial not to duplicate the same capital outlays in both countries …especially with the gas and the bauxite project and you know, the downstream of the gas – we need to see what we can do [together]… And of course, I think in the coming 10 to 15 years, we need to go to the Northern part of Brazil with electricity because they have a difficult time with supplying electricity in the northern part,” Jagesar pointed out.
According to the Surinamese official, there are already piles of paperwork done by the Inter-American Development Bank (IDB) on connecting the eastern part of Brazil with the western part through the Guianas – French Guiana, Suriname and Guyana. While those studies were based on hydropower projects, Jagesar believes that the data can be adapted for this new opportunity with natural gas.
The Managing Director of Staatsolie subsequently told the Guyana Times that gas development needs volume and it makes sense for Guyana and Suriname to combine their resources to meet that scale. He further explained that while there is a rush to develop these resources given the climate window, this has to be done in a well-thought-out manner.
“So, we have to be a little bit in a hurry but we have to think it well through,” he stated.
According to Jagesar, the two countries have to work out key issues including the economics of such a collaboration, and also work along with their respective oil companies on a favourable model that would ensure profitability.
“I think we need to set up a Joint Committee to look at all these projects and also the collaboration… I think the Vice President [Jagdeo] mentioned that we need to have a meeting to take care of [setting up that committee],” the Surinamese official noted.
In the Stabroek Block, which United States oil major ExxonMobil and its co-venturers are operating, some 17 trillion cubic feet of gas has already been found with the Pluma and Haimara wells being proven gas fields. The People’s Progressive Party/Civic (PPP/C) Government is seeking to develop this gas.
President of ExxonMobil Guyana Ltd, Alistair Routledge, on Wednesday also disclosed at the Guyana Energy Conference, that Exxon and the Guyana Government are exploring the different options available to utilize the country’s rich gas from offshore. Among the options being considered is the establishment of data centres here – something which they are already discussing with potential investors.
However, the ExxonMobil Guyana President believes that there is much more potential to come especially with its eighth project – the Longtail Development, which will be located in the south-east end of the Stabroek Block which is considered as a non-associated gas area.
Routledge told delegates at the Energy Conference that this project is unique wherein it will produce both crude but also natural gas, leaning, however, more on the latter.
“We’ll have around one to 1.2 billion cubic feet per day of gas… It’s enormous,” he declared.
With this gas, the ExxonMobil Guyana President believes that Guyana could pursue, in addition to the power data centres, fertilizer plants and alumina using refined bauxite, among other ventures.