US company looking to launch refined fuel deal with Guyana

A US-based company is planning a significant investment in Guyana’s oil and gas sector, aiming to process 30,000 barrels of oil daily by year’s end. 

President Dr Mohamed Irfaan Ali stated that the initiative is expected to meet national demand and extend services to neighbouring Brazil and the wider region.

“[It] will see refined products coming into Guyana at cheaper prices and that will see us creating a hub for the rest of the region here in Guyana,” the president disclosed.

He was speaking at the opening ceremony for the Guyana Energy Conference and Supply Chain Expo held on Tuesday at the Marriott Hotel in Kingston, Georgetown.

In its first two years, the project will see a minimum of US$300 million investment, President Ali said.  The government is finalising the details to ensure maximum benefits for Guyana and the region.

The venture involves more than just a commercial partnership. President Ali explained that the storage facility will likely be established outside Guyana.

“Imagine us creating a refined product hub for the region, for northern Brazil, here. Imagine the type of other logistical and value creation and opportunity that it will bring. These are the type of investments we are pursuing: transformative investment,” the head of state emphasised.  

This venture will have a ripple effect on other key sectors of the economy, including maritime, transport and logistics arenas. Further, thousands of jobs will be created through its successful operation.

The government is already exploring the viability of a 30,000-barrel oil refinery at Berbice, enabling the country to sell different parts of crude oil to various industries.

An oil refinery is a factory that turns crude oil into useful products, like diesel, gasoline, lubricants, and heating oil.