Gov’t firm on monetising associated gas

– GS Jagdeo says LNG remains a feasible, fast option

Vice President Dr Bharrat Jagdeo, who leads policy issues in the oil and gas industry, has made it clear that the government remains serious about monetising Guyana’s gas assets through collaboration between the government, ExxonMobil and private investors. 

He emphasised this point while addressing the remarks of ExxonMobil President, Alistair Routledge, who indicated that converting associated gas to liquified natural gas (LNG) is not a current priority of the oil company. 

In response, the vice president reminded reporters that the intention has always been to pursue a tripartite arrangement that will ensure the associated gas is used productively. 

“If they don’t want to move to the project, then we get some other contractor to [pursue the project,” he said during a press conference on Thursday at Freedom House. 

He opined that ExxonMobil’s position could, in some way, delay the project, noting that the government maintains an open mind regarding the most beneficial and viable use of the gas assets, which will, in turn, yield the greatest benefits to Guyana and its people.

The vice president reminded that the government does not intend to invest directly in the project, as it will be primarily led by the private sector, which must have a say in how the gas is used. 

He warned that dismissing LNG as a priority could unnecessarily delay the project, especially since infrastructure for alternative uses would take much longer to develop. 

“Anything that will monetise the gas, either for industry or for the people, will be a priority for us,” the vice president said, disagreeing with ExxonMobil’s suggestion that LNG is not a priority.

In January 2024, 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). 

The government has since received  Expressions of Interest (EIOs) for a model that will help Guyana monetise its gas assets.