Expressions of Interest (EOIs) for a model that will help Guyana monetise its gas assets are currently under review by the government through the Ministry of Natural Resources.
This is according to the Peoples Progressive Party’s (PPP) General Secretary, Dr Bharrat Jagdeo.
Following extensive reviews, the ministry will then recommend a preferred group to the cabinet from all those who submitted expressions.
“We will then initiate a meeting, a tripartite meeting with that group, Exxon Mobil, and the Government of Guyana to discuss how we can move forward as quickly as possible to monetize the gas,” Dr Jagdeo stated during a press conference Thursday last at Freedom House, Georgetown.
In January, President Dr Mohamed Irfaan Ali announced the government’s plans to accelerate the monetisation of the country’s gas resources estimated at 17 trillion cubic feet (tcf) and would request proposals for this purpose.
In October 2023, a draft of the Guyana Gas Monetization Strategy was released for public consultation.
“We have HIS Market now working with us on doing a strategy. I saw elements [in] the issue paper that came recently and I said, if they do what they want to do, it will take a very long time, because you’re getting into, almost trying to monetise the gas on your own. The document would do a lot of technical work, since we’re hoping that this is going to be driven by the private sector, the government will not invest in it,” he informed reporters.
Dr Jagdeo also emphasised that this strategy should be investor-driven since the government aims to benefit from more revenue through this investor-driven undertaking.
“That is why we don’t need to do all the detailed technical work. This should be done by the parties that want to develop the project… if you do all that detailed technical work, it might tie you to a particular approach on monetizing the gas, that we don’t know would be the best approach that the investors want,” he said, stressing the need for a comprehensive strategy that creates a supportive environment for monetising gas assets.
Guyana began oil production in 2019 in the Stabroek Block offshore. In addition to oil, the offshore block also contains natural gas resources and the government is hell-bent on utilising these resources to generate cheaper energy and create other products.
The strategy lists various monetization options, such as using natural gas for power generation and producing methanol, liquefied natural gas (LNG), ammonia/urea, and blue ammonia/hydrogen.
As per the draft gas monetization plan, it is estimated that there are approximately 17 trillion cubic feet of recoverable gas resources in the Stabroek Block. These resources mainly include associated gas and condensates.
