Guyana is likely to become one of South America’s top oil and gas producers over the next four years.
Work will begin on constructing a major gas-fired power plant in 2022 on the expectation that a 220-kilometer (135-mile) pipeline will be built.
“The start date of laying the pipe is now being finalised, but the decision has already been made,” Peter Ramsaroop, chief executive officer of GoInvest. “Guyana must have the gas and hydropower to be able to bring a competitive economy to the point where we can depend on our own energy to deliver our goods and services.”
Guyana’s new energy wealth has already made it one of the world’s fastest-growing economies, with the International Monetary Fund forecasting gross domestic product expanding 20% this year.
Exxon Mobil Corp has embarked on massive offshore oil developments in the country. The discoveries, pegged at 10 billion barrels of oil equivalent, also contain vast amounts of natural gas, which government officials want to utilise for power generation.
Exxon “expects to make significant progress over the next few years in cooperation with the Government of Guyana to advance a gas-to-energy project,” it said in a statement. The pipeline would transport about 50 million standard cubic feet a day of gas from the company’s Liza Phase 1 and 2 oil projects, it said.
Guyana is aiming to “build that infrastructure foundation that allows our known industries to be modernised and expanded,” Ramsaroop said. “Investors looking at Guyana today are really looking at the wider corridor of northern Brazil, Suriname, Guyana and even French Guyana.”
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