Guyana continues to receive an increasing number of proposals for the construction of oil refineries in the country, but according to Vice President Bharrat Jagdeo, the country only has capacity for a single refinery.

“We don’t have the capacity for two refineries. There will be, if that project goes forward, the one refinery,” the Vice President told reporters on Thursday at a press conference.

Last week, the Government of Guyana a Memorandum of Understanding (MoU) with the Dominican Republic for the construction of an oil refinery and petrochemical plant in Guyana. However, the terms of that agreement have not been made public.

A year ago, the Irfaan Ali Administration indicated that a 30,000 barrel of oil per day refinery would be constructed in Berbice, Region 6.

In January, the Minister responsible for Finance, Dr Ashni Singh, announced that nine proposals had been received by the Government for the design, financing and construction of a local oil refinery at Crab Island in Region Six.

On Thursday, Vice President Jagdeo said the Government is still exploring its options as the country continues to receive increasing interests from a number of countries.

“We are still exploring one refinery but we have had several interests. So, we went out for request for proposal. We have several of those. There was a first-round evaluation, [and] we are waiting for more information but even as we do that, a number of other countries are sending in proposals to us. At the end of the day, if it goes forward, it has to be on conditions that are good for our country, and they have to meet all of the financial and technical requirements,” VP Jagdeo said.

He further stated that even as the Government explores the possibility of establishing an oil refinery here, it is simultaneously considering setting up reserves similar to the strategic oil reserves in the United States.

“We are exploring what it would take to toll some of our crude and what fee we may have to pay for tolling the crude, and then bringing back the refined products, and storing them like in the US, they have strategic reserves,” the Vice President said.

Vice President Jagdeo said such a move would allow the country to achieve national energy security, and significantly reduce the cost of refined products locally.

Trinidad and Tobago has long signaled a willingness to refine Guyana’s oil, indicating that it has the capacity to refine approximately 140,000 barrels of oil per day. But the Vice President the Government prefers for Guyana to have its own refinery rather than be dependent on any other state.

“If we are doing a refinery, it will be here because it defeats the purpose of your energy security and you have refining done in Trinidad but if you can get a tolling fee, it could be refined anywhere in the world but you then store the refined products here but that’s a different concept. So, one, if you are doing tolling then it could be done anywhere providing that it is cost competitive, if you are doing refinery, it has to be here,” he said.

The Government has set itself a 2025 deadline for the construction and operationalization of a local oil refinery. (Svetlana Marshall)

Related posts:

Jagdeo says Government has made no decision on establishing local oil refinery No agreement signed with India on sale of Guyana’s crude or exploration -says Jagdeo Government eyeing investors for oil refinery and new bridge over Berbice river Trinidad oil company wants to develop business relations with energy companies in Guyana