Exploring Regional Collaboration for Energy Development
A New Chapter for Guyana’s Natural Gas Strategy?
Vice President of Guyana, Hon. Dr. Bharrat Jagdeo, recently announced that the government is open to exploring the possibility of exporting natural gas to Trinidad and Tobago for processing. This proposal adds to a growing list of strategies being considered to monetize Guyana’s vast gas resources.
“If taking gas to Trinidad yields the greatest return for the project, and it proves feasible, that could be the way forward,” Jagdeo explained.
Guyana’s Growing Energy Portfolio
Since crude oil production began in 2019, Guyana’s oil output has experienced exponential growth. The landmark Liza discovery by ExxonMobil in 2015 has since been followed by over 30 additional finds in the Stabroek Block, paving the way for six offshore developments and a projected daily output exceeding one million barrels of oil in the near future.
Yet despite this impressive oil boom, Guyana has not yet commercialized its natural gas. Presently, most associated gas is either re-injected into reservoirs or used on FPSO vessels for operations.
Gas-to-Energy Project: A Game-Changer
That’s about to change. The government’s much-anticipated Gas-to-Energy project is expected to go live by 2026. The initiative involves transporting 50 million standard cubic feet per day (mscf/d) of gas from the Liza field to the coast, where it will power a 300 MW combined cycle power plant and support a natural gas liquids (NGL) facility producing up to 5,800 barrels per day.
This marks Guyana’s first domestic use of its offshore gas and opens doors to broader industrial applications—including the fertilizer and petrochemical sectors.
Four Options on the Table
Vice President Jagdeo outlined four possible directions for Guyana’s gas strategy:
- Domestic Power Generation – Use gas locally to produce electricity and potentially supply neighboring Brazil.
- Industrial Development – Establish facilities for producing petrochemicals or fertilizer.
- Offshore LNG Production – Develop infrastructure to export liquefied natural gas (LNG).
- Export to Trinidad and Tobago – Transport gas to T&T for processing, utilizing their existing infrastructure.
The fourth option—exporting to Trinidad—is now under active consideration, though it will depend on detailed feasibility assessments and input from private sector partners.
Why Trinidad?
With domestic gas production in Trinidad currently at around 2.5 billion cubic feet per day (bcf/d), the country has spare processing capacity that could potentially accommodate Guyanese gas. This makes T&T a promising partner, especially within the framework of regional energy cooperation.
However, challenges remain. Exxon’s Country Manager, Alistair Routledge, has previously pointed to the distance between the two countries and the necessity to cross Venezuelan territorial waters as significant hurdles in building a direct pipeline connection.
Looking Ahead
While the feasibility study is still underway, the conversation marks an important step in Guyana’s journey to diversify and capitalize on its energy assets. With multiple options on the table, the nation is positioning itself not just as an oil producer, but as a strategic energy player in the region.
Stay tuned for updates as this story—and Guyana’s energy future—continues to evolve.
