Fulcrum LNG, the US company that was controversially selected to develop gas infrastructure here is vowing to adhere to the highest safety standards
Critics have said that the company was not experienced enough and that the connections of its top executive to ExxonMobil should have ruled it out. The selection once again raised questions about how procurement decisions are being made here.
In a release on Wednesday, Fulcrum LNG, said that after responding to the Government of Guyana’s public request for proposals, it had been selected to design, finance, construct, and operate, the required gas infrastructure to provide gas monetisation solutions and support the acceleration of upstream gas developments in Guyana.
The company said that its contribution is part of the Government of Guyana’s stated plan to safely and timely develop its gas resources and create an open-access infrastructure system, providing additional monetisation alternatives to upstream developers. Further, its selection by the government underscores Fulcrum LNG’s commitment to advancing energy infrastructure solutions and represents a critical step in bolstering Guyana’s energy sector. As such, the project will play a pivotal role in transforming Guyana’s natural gas sector, enhancing energy security, and boosting the country’s economic growth.
CEO of Fulcrum LNG, Jesus Bronchalo, stated that they were honoured to be selected to undertake this strategic energy infrastructure project. “This opportunity aligns perfectly with our mission to deliver innovative, reliable, and sustainable energy solutions to develop gas resources. We look forward to working closely with the Government of Guyana and other key stakeholders to ensure the success of this endeavor.”
Bronchalo had once been employed by ExxonMobil.
According to the release, the main feature of Fulcrum LNG’s solution will involve the development of state-of-the-art gas processing and modular, scalable facilities to produce liquified natural gas (LNG) and natural gas liquids/ liquid petroleum gas (NGLs/LPGs) for Guyana as well as regional and global markets. The company said that it has partnered with some of the industry’s leading global firms leveraging advanced technology and industry expertise to deploy the most “robust, efficient, and sustainable” infrastructure solutions.
Fulcrum LNG posited that the undertaking will provide all upstream developers in Guyana and regionally, with additional optionality beyond their current contractual arrangements by investing in the development of the necessary open-access infrastructure to monetise their gas resources and thus incentivise the development of those resources. Further, the company’s proposed infrastructure solutions, in close collaboration with upstream developers, will increase the economic viability of current and future upstream gas discoveries, increasing the overall value proposition for the entire basin. Additionally, substantial economic benefits, including job creation, significant foreign investment, and enhanced energy trade relationships are expected from this venture.
It also disclosed that in keeping with its project proposal, Fulcrum LNG is considering Guyanese investors in various components of the project.
“Fulcrum LNG’s comprehensive approach to the project will include environmental stewardship, community engagement, and adherence to the highest safety standards. Additionally, the company is committed to ensuring that the development of this strategic infrastructure proceeds in a manner that is both sustainable and aligns with national priorities, delivering tangible benefits to the Guyanese people,” the release added
On June 25th , the Guyana Government defended its decision to select the less-than-one-year-old Fulcrum LNG Inc company headed by ExxonMobil’s former Vice President of LNG Market Development, Bronchalo, who worked here up to last year, insisting procurement procedures were above board.
“Fulcrum LNG, a US-based company, was deemed the most responsive compliant bidder and ranked No.1, followed by CNOOC Power and Gas Group, ranked No. 2, and a consortium of local and international companies which were ranked No. 3,” the statement said.
“As such, Fulcrum LNG will be supporting the government and the Stabroek Block operator, ExxonMobil Guyana, to utilise the non-associated gas – serving as an independent development,” it added.
It is unclear how a company just one year old could be selected ahead of others with experience.
President Irfaan Ali had announced in June that the company was selected to monetize this country’s natural gas resources. Bronchalo, who once held a number of positions at ExxonMobil since 2004, including serving as its representative on the Guyana Extractive Industries Transparency Initiative (GY-EITI) Board, had three days earlier announced his new role. “I’m happy to share that I’m starting a new position as Founder & CEO at Fulcrum LNG Inc.” he wrote on LinkedIn.
That position will see him work alongside ExxonMobil and government to determine what are the best financial decisions for this country’s natural gas. Given his previous association with ExxonMobil there are concerns that there won’t be sufficient distance to ensure that the country’s interest is the number one priority for Fulcrum.
Fulcrum LLC Inc was registered in the tax-free business state of Nevada in the USA on July 31, 2023, with NV20232857050 as its business registration number and an address of 937 Tahoe Blvd, Suite 130B, Incline Village, 89451-9462.
Bronchalo described himself as an energy executive with over 20 years of experience and multiple leadership positions, who is “passionate about energy, energy transition and sustainability, leadership, strategic thinking, diversity and inclusion, and high performing organizations.”
He stated that he joined ExxonMobil in May of 2004 and worked in various positions for that company that included Commercial and Strategy Director, Vice President LNG Origination, Portfolio Development and Strategy, Vice President, and Chief Commercial Officer here for Esso Exploration Production Limited now ExxonMobil Guyana. He also served for four months as Senior Vice President Business Development Low Carbon Solutions Asia Pacific.
