As the world continues to grapple with the effects of the largest-ever global oil supply disruption, President Irfaan Ali has indicated that Guyana is building its capacity to withstand such shocks, and has resumed “serious discussions” on having an oil refinery in the country.

Mr. Ali made the disclosure on Wednesday in a video release.

“We are in serious discussion back to have a refinery here in Guyana for national security and a fertilizer plant for national and regional security,” President Ali said.

President Ali explained that the ongoing geopolitical tensions have reinforced the need for Guyana to strengthen its energy independence and resilience.

While Guyana has emerged as a major oil-producing nation, the country still depends heavily on imported fuel, particularly for electricity generation.

Initially, the country was focused on expanding its fuel storage capacity, and was locked in discussions with U.S company – Curlew Midstream – on a US$300 million investment deal to have cheaper refined energy products made available to Guyana. However, the recent global developments have necessitated a policy shift to have a refinery established here.

President Ali said already, the country has invested in a Power Plant and Natural Gas Liquids (NGL) Plant at Wales – a project his government assures will redound significant benefits to the Guyanese people, and will increase the country’s capacity to withstand global shocks in the energy Industry.

“In Guyana, 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 will have our own natural gas. We will control the price of energy by managing through our own natural gas, the cost, bringing down the cost of energy by half,” the President said.

He said the investments made today will create opportunities in the industrial and manufacturing industries, and other sectors.

He disclosed that earlier this week that he held discussions with the President of the Dominican Republic, Luis Abinader and other stakeholders on the need to devise a plan to cushion the impact of the current disruption, and the lasting impact, it will have on economies.

He said the entire world is reorienting its system as result of the disruption to the global supply chain, and countries like Guyana and DR must learn from the situation.

 “Long before this crisis, as you know, my government implemented several initiatives to make our gas energy more secure – the gas to energy project, investments in renewables such as solar and hydro. We provided incentives for hybrid and electric vehicles, provided incentives for agriculture processing, value creation, and investment. The gas to energy will provide the country with LNG and fertilizer in the near future and over the next five years we will look towards completing the gas-to-energy 2 project – a project in Berbice, which will firmly cement ourselves as a major supplier within the region and create energy security within the region,” the President said.

President Ali said his Administration is closely monitoring and assessing the situation, and remains in constant communication with global players.

He assured that his Government will continue to make decisions that will protect the country and its people.

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