“We’re in serious discussion” with Dominican Republic – Pres Ali revives push for Guyana oil refinery

…says Govt pushing initiatives to protect from global shocks

With the ongoing war in the Middle East triggering far-reaching consequences that are already impacting global supply chains and economies, the Guyana Government has re-engaged the Dominican Republic (DR) on the establishment of an oil refinery here.
During a special edition of his ‘Tea on the Terrace’ programme on Wednesday to talk about the impact of the Middle East conflict, President Dr Irfaan Ali underscored the importance of building local capacity to withstand these global shocks. With this in mind, the Guyanese leader said he re-ignited talks with his Dominican Republic counterpart, President Luis Abinader.
“We’re in serious discussion back to have a refinery here in Guyana for national security and the fertilizer plant for national and regional security,” Ali stated during the sixth episode of his programme.
“Only yesterday [Tuesday], I had a conversation with the President of DR and other stakeholders to see how we can come up with a plan ahead because we have to now use this as an additional step in the learning curve that the entire world is going through.”
An oil refinery is a factory that turns crude oil into useful products, like diesel, gasoline, lubricants, and heating oil.
Back in 2023, Guyana and the Dominican Republic signed a Memorandum of Understanding (MoU) for, among other things, a 50,000-barrels-per-day oil refinery to be built here. As per the terms of the agreement, the DR will have 51 per cent ownership of the refinery.
In addition to this partnership with the DR, Guyana is also pursuing a separate oil refinery in Berbice with a 30,000-barrels per day (bpd) capacity. Only last month, it was reported that the Guyana Government and United States-based Curlew Midstream are still ironing out contract details with respect to refining and storing locally produced oil.
Talks have been ongoing between Guyana and the Bentonville, Arkansas-headquartered energy infrastructure company since February 2025, but a deal is yet to be struck. But US Ambassador to Guyana, Nicole Theriot recently indicated that this collaboration is still active, dismissing concerns that the project has been stalled.
“I was talking to the Government and to Curlew about this. Negotiations are absolutely ongoing. They’re still working to reach an agreement on the contract, so it’s best if I don’t speak to it further because it is still ongoing. But we are very confident that they will reach a resolution,” the US diplomat stated.
This refined fuel facility will see a minimum of US$300 million investment in the first two years.
Meanwhile, as the world continues to face the impact of the ongoing Middle East war, President Ali says his government has already taken steps to build local capacity so that Guyana can withstand these global shocks in the future.
“The long-term investments that we are making in our own gas plant and gas bottling plant will see us building up internal capacity to withstand certain shocks because we’ll have our own natural gas. We’ll control the price of energy by managing, through our own natural gas, the cost; bringing down the cost of energy by half. So that we will have stable fertilizer, stable gas, stable industrial and manufacturing opportunities because we manage and we’ll be able to manage the cost of our own power,” he asserted.
With supply chain shocks causing severe disruptions to countries dependent on imported gas, fuel, fertilizer, and refined products, President Ali underscored the importance of having a diverse energy mix. He cited the government’s model Gas-to-Energy Project, investments in renewable energy such as solar and hydropower, providing incentives for hybrid and electric vehicles, incentives for agriculture processing, value creation and investment, and encouraging the efficient use of electricity at home through the promotion of solar home systems, as some of the interventions undertaken.
“The Gas-to-Energy will provide the country with LNG (Liquified Natural Gas) and fertilizer in the near future and over the next five years we will look towards completing the Gas-to-Energy [Phase] Two project [and the second gas] project in Berbice which will further cement ourself as a major supplier within the region and create energy security within the region,” the Guyanese Leader posited.
Projections for 2026 show persistent global food and energy insecurity due to the war, with analysts warning that prices will not crash back to post-war levels due to the massive backlog and time required to restart chemical plants.
Already, the International Monetary Fund (IMF) says that with new shocks, the global economic growth is now projected to slow to 3.1 per cent in 2026, and is urging countries to calibrate policies that respond to today’s pressures while strengthening resilience for potential future shocks.
To this end, President Ali assured that government will continue to monitor the situation and is ready to make necessary adjustments for the country and its people.
“We are in conversation every single day with global players in the global market and we are making the decisions that will protect the people of our country, our country and protect our region because it’s important that the region also remains strong… You have a responsible government, a government that is ahead of the planning cycle and one that is ready and willing to make the necessary adjustments and to take the steps that will secure our economy not only for today but in the long term, ensuring resilience, sustainability and prosperity,” the Head of State assured.