In the wake of the massive hydrocarbon find by ExxonMobil offshore, Guyana is considering the feasibility of developing a Liquefied Natural Gas (LNG) facility to refine gas.
This was disclosed by Executive Director for Guyana at the International Monetary Fund (IMF) Otaviano Canuto, who issued a statement on behalf of the country when the IMF’s Executive Board met in May to deliberate on Guyana’s staff report. Canuto’s statement was released this month by the IMF.
As it relates to the ExxonMobil find which has generated interest and excitement here, Canuto said:
“Pertaining to the significant oil and gas discoveries off the coast of Guyana, the authorities took the initiative to undertake exploration and other capacity building efforts.
They are currently assessing the feasibility of developing an LNG facility to refine the gas. This investment will bring fruitful rewards to the Guyanese people through increased fiscal revenues, employment and income, which will propel Guyana towards achieving sustainable development goals and mitigate the country’s exposure to any subsequent increase in oil prices. In addition, an Oil and Gas Committee was established in February 2016 and charged with developing the sector. In addition, external assistance is being sought to establish a Sovereign Wealth Fund and supporting legislation.
It should be noted that the authorities have taken an extremely conservative stance and have not factored in the possible future revenues from oil (and) gas into their medium-term framework.”
The reference to LNG would suggest that in addition to the oil find there are substantial gas deposits where ExxonMobil drilled.
However, tapping of the oil and gas is likely to still be around five years away.
A footnote in the IMF country report on Guyana released last week cites 2020 as the earliest that production might begin.
