By: Antonio Dey | HGP Nightly News|
GEORGETOWN, GUYANA — The blueprint for Guyana’s second industrial revolution is taking shape. Alistair Routledge, President of ExxonMobil Guyana Limited (EMGL), revealed on Thursday that the company has already received several “letters of interest” for a massive second gas-to-energy project slated for Berbice by 2030.
This project is envisioned not just as a power source, but as the heartbeat of a new industrial ecosystem, attracting global interest in high-energy ventures.
The Berbice Industrial Ecosystem
The proposed project in Berbice is significantly more ambitious than the current Wales development. Routledge noted that while the Wales pipeline cost approximately US$1 billion, the Berbice infrastructure—utilizing larger gas volumes and a bigger pipeline—could exceed US$2 billion.
- Anchor Projects: For an investment of this scale to be viable, “anchor projects” are needed to create high demand.
- Global Interest: ExxonMobil has received inquiries for:
- Data Centers: Attracted by the prospect of cheap, reliable energy.
- Bauxite-to-Alumina Conversion: A move toward value-added mineral processing.
- Petrochemicals & Fertilizers: Utilizing gas as a raw material for regional export.
- Strategic Sources: Gas for this project would likely be piped from the Longtail and Haimara offshore fields, which are being matured as gas-heavy developments.
A Hard Look at the Numbers: Pricing and Viability
Routledge emphasized that before the “first shovel” hits the ground in Berbice, a sustainable commercial value chain must be established.
- Market Confirmation: ExxonMobil is working with local and international partners to ensure there is a guaranteed market for the gas.
- Pricing Structure: Sustainable gas pricing is critical to recoup the US$2B infrastructure cost while still providing the “cheap energy” promised to the Guyanese public.
The US$214 Million Audit: Seeking a “Sole Expert”
Addressing long-standing questions regarding the 1997–2017 cost-of-oil audit, Routledge provided an update on the dispute involving US$214 million in questioned expenses flagged by auditors IHS Markit.
- The Process: After years of back-and-forth, the government (via the GRA) and ExxonMobil have finally agreed to appoint a “Sole Expert” to resolve the impasse.
- Selection Status: Routledge confirmed that the selection process is ongoing. While there is no “strict deadline,” both parties are reviewing candidates to find an independent expert with the necessary technical and financial expertise.
- Sanctity of PSA: The resolution will follow the protocols outlined in the 2016 Production Sharing Agreement (PSA), and will move away from direct negotiations that sparked controversy in 2023.
Comparing the Gas Projects
| Feature | Wales (Phase 1) | Berbice (Proposed) |
| Target Date | Late 2026 | 2027–2030 |
| Pipeline Cost | ~US$1 Billion | >US$2 Billion |
| Key Focus | 300MW Power / LPG | Industrial / Manufacturing Hub |
| Offshore Source | Liza Field | Longtail / Haimara |
Conclusion: Beyond Oil
The shift toward Berbice signals Guyana’s transition from an oil-exporting nation to a regional manufacturing powerhouse. As Alistair Routledge noted, the “molecules” of gas are the key to creating thousands of high-skilled jobs onshore, provided the commercial and legal frameworks are built at the same pace as offshore FPSOs.
