Home Letters LNG exports continue to be a viable option
Dear Editor,
The viability of the export market for Guyana’s liquified natural gas (LNG) has been recently confirmed by a new report from Wood MacKenzie. The current market price, access to shipping lanes, a shift in U.S. policy and increasing demand have positioned our country to easily make a substantial sum annually with the export of our LNG. This strategy also avoids the health, production and environmental costs associated with the conversion of the LNG into fertilizer, and increases the cash flow of the country. The annual sum available to be had is quite substantial and the government should review the recent report by this reputable company, which supports the development of the LNG export market for Guyana.
Focusing on LNG export should be a no brainer as it provides quick access to income that can be used in lieu of loans to finance other national development projects. The Billions gained from this venture will also further support the development of the Natural Resource Fund (NRF) and strengthen the long-term economic stability of our country. It’s an easy make vs. buy decision and the country can focus its efforts on leapfrogging the energy transition mix by going straight into the renewable energy sector. Our size and energy demand allow it and we should allow the country to develop rapidly in such a responsible manner. Our ecotourism credentials will also be boosted and our energy bill will reduce to a lower level than the proposed gas to energy project price.
I strongly recommends taking the LNG export approach and using it to
1. Improve our cash flow for stronger financial performance and lower debt dependence
2. Accelerate our clean energy mix for lower health and environmental risks
Best regards,
Jamil Changlee