With an estimated gas reserve of approximately 17 trillion cubic feet, Guyana is now looking to monetize that natural resource, as it hopes to one day become a major producer and exporter of associated gas, the Vice President, Bharrat Jagdeo has announced.

 Speaking on Guyana’s Energy Sector at an Energy Conference in Texas, the Vice President said the President Irfaan Ali Administration has already initiated discussion with U.S oil giant – ExxonMobil – on the full utilization of the associated gas currently being generated offshore Guyana in the Stabroek.

“We have 17 trillion cubic feet of associated gas; a lot of associated gas and they were saying they needed to reinject this gas to keep the quality of the wells up. We are having a different conversation now, to move to monetize the gas,” the Vice President said.

Exxon is currently conducting a number of gas-related studies, and is expected to produce a Gas Utilization Plan.

The Government recently announced that with help from India, a National Gas Strategy is being developed.

 While addressing the press last week, the Vice President said Exxon in crafting the Gas Utilization Plan, must clearly define how it will monetize the gas.

He warned that should the company fail to effectively utilize the gas, the Government will be left with no other choice but to relinquish it.

At the CERAWeek 2023 Energy Conference, Mr Jagdeo told the S&P Global Vice Chairman that once the auctioning of the 14 oil blocks is completed, the Government will tackle the issue head-on.

But the sale of the associated gas aside, the Vice President said the US$2B Gas-to-Energy Project, which is scheduled for completion in 2024, will significantly reduce the cost of electricity in Guyana, putting an end to an age-old problem.

“When that is completed, we will cut electricity prices by 50% and be an exporter of cooking gas. So, that is a game changer for people and for the private sector in Guyana, because the stability of electricity supply, and the price has been a deterrent to the development of other sort of manufacturing. So that’s going to have a huge impact in Guyana,” he explained.

The proposed project would bring associated gas from Exxon’s Liza Phase 1 and 2 developments via a pipeline to Government’s onshore gas processing facilities at Wales.

The pipeline would transport up to 50 million standard cubic feet per day of natural gas to the Gas Power Plant and NGL Facilities.

The CERAWeek 2023 is being hosted in Houston, Texas by S&P Global.

It is one of the biggest events on the calendar for the energy industry, with over 1,000 CEOs, policymakers and financiers due to speak.

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