Exxon plans large-scale gas project in oil-dominated Guyana (updated)

SBM Offshore NV

19/02/2025 17:02

(Recasts, adds details and context in paragraphs 2-7 and 9)
    By Marianna Parraga and Kemol King
       GEORGETOWN, Feb 19 (Reuters) - U.S. oil major Exxon
Mobil  XOM.N  is planning to increase natural gas output and
supply in Guyana through a large-scale project announced on
Wednesday, following the government's call for more gas to fuel
onshore power and petrochemical projects.
    The "Wales Gas Vision", outlined by Exxon's Guyana head,
Alistair Routledge, is set to provide gas for the production of
fertilizers through a $1 billion pipeline completed last year.
    The government will take a portion of the gas supplied by
Exxon for power generation and natural gas liquids production
through its Gas-to-Energy project. 
    Exxon's Wales project also requires the building of separate
pipelines and a gas processing and liquefied natural gas (LNG)
offshore facility. The facility will allow LNG exports and gas
supply to Guyana's Berbice area for producing fertilizers and
alumina, Exxon said.
    The company did not give a total investment figure for the
project. 
    The Exxon-led consortium in Guyana, in which U.S. Hess
 HES.N  and China's CNOOC  600938.SS  participate, plans to ramp
up gas output in the coming years, especially through projects
involving gas not associated with oil, such as Longtail. 
    A final investment decision for Longtail, which would be the
group's eighth project in the South American country and deliver
up to 1.2 billion cubic feet per day (bcfd) of gas, is expected
next year. 
    Exxon is "ready to deliver gas" to shore, Routledge said at
Guyana's Energy Conference.    
    Guyana is aiming to add natural gas to an energy mix
dominated by oil output, helping to increase power generation
and open new sources of revenue by exporting petrochemicals and
LNG, energy minister Vickram Bharrat said earlier on Wednesday.
    "There will be a shift towards gas utilization and
monetization", the minister said at the conference in
Georgetown. The government is expected to launch its ambitious
gas strategy this year.
    The country's fourth floating oil production facility, built
by SBM Offshore  SBMO.AS  that departed from Singapore this
week, will start operations in the third quarter, Exxon said. 

 (Reporting by Kemol King and Marianna Parraga; Editing by
Kirsten Donovan)
 ((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))