Exxon to build large-scale gas projects in Guyana, a country dominated by oil

Exxon Mobil, the U.S. oil giant, announced a massive project on Wednesday to increase natural-gas production and supply in Guyana. This follows the government's request for more gas as fuel to power onshore projects and petrochemical ones.

Alistair Routledge of Exxon Guyana, the head of Exxon in Guyana, outlined a "Wales Gas Vision" that will provide gas to produce fertilizers via a pipeline worth $1 billion completed last year.

Through its Gas-to-Energy Project, the government will use a portion (of the gas) supplied by Exxon to generate electricity and produce natural gas liquids.

Exxon’s Wales project requires the construction of separate pipelines, a gas-processing facility and an offshore LNG facility. Exxon says the facility will enable LNG exports to Guyana’s Berbice region for fertilizers and alumina production.

The company didn't give an investment total for the project.

The Exxon-led Guyana consortium, which includes U.S. Hess, China's CNOOC, and other oil companies, is planning to increase gas production in the next few years, particularly through projects that involve gas not related to oil, like Longtail.

Longtail will be the eighth project for the group in South America and could deliver up to 1,2 billion cubic feet of gas per day. A final decision is expected by the end of the year.

Routledge, speaking at Guyana Energy Conference, said that Exxon was "ready to deliver" gas to the shore.

Energy Minister Vickram Bharrat stated earlier Wednesday that Guyana aims to add natural gases to its energy mix, which is dominated by oil production. This will help increase electricity generation and create new revenue streams by exporting LNG and petrochemicals.

The minister stated at the Georgetown conference that "there will be a change towards gas usage and monetization". The government will launch its ambitious strategy for gas this year.

Exxon announced that the country's fourth offshore floating oil production platform, built by SBM Offshore and which left Singapore this week, would begin operations in the third-quarter. (Reporting and editing by Kemol King, Marianna Pararaga)

(source: Reuters)