Refinery Strategy: Guyana Weighs Regional “Win-Win” with Trinidad and DR Interest
By: Marvin Cato | HGP Nightly News|
GEORGETOWN, GUYANA — Minister of Natural Resources Vickram Bharrat has confirmed that Guyana is currently navigating a complex “regional energy puzzle” as it explores the most viable path for a future oil refinery. While the dream of local refining remains a cornerstone of national security, the government is simultaneously fielding high-level proposals from Trinidad and Tobago and the Dominican Republic, even as it faces a major physical hurdle: the shallow draft of Guyana’s rivers.
The Trinidad Option: Reopening a Regional Giant
The most immediate regional prospect involves the potential restart of the Pointe-a-Pierre refinery in Trinidad, which has been idle for several years.
- Feedstock for Revival: Trinidadian authorities have engaged Guyana to determine whether it can provide a consistent crude supply needed to operationalize the facility, which has a capacity of approximately 140,000 to 150,000 barrels per day.
- The “Investment” Barrier: Minister Bharrat clarified that Guyana cannot commit to a partnership until the necessary capital investment—estimated at up to $200 million USD for a full restart—is secured to bring the refinery back online. “Nothing is agreed. It is just at a stage where we are still in talks,” Bharrat emphasized.
- The Goal: A “win-win” scenario where Trinidad provides the refined gasoline and diesel for the entire CARICOM bloc, powered by Guyanese light sweet crude.
The Dominican Republic: A Serious Bidder
Separately, the Dominican Republic (DR) has reaffirmed its “serious interest” in partnering with Guyana on a dedicated local project.
- 51% Stake Proposal: Previous discussions with President Luis Abinader centered on a joint venture for a 50,000-barrel-per-day refinery in Guyana, with the DR reportedly prepared to hold a 51% controlling interest.
- National Security: President Irfaan Ali has noted that a partnership with the DR could extend beyond fuel to include a fertilizer plant, thereby securing regional food and energy supplies in a single strategic move.
The “Draft” Problem: Why Large Tankers Can’t Dock
Despite the international interest, Minister Bharrat identified a significant physical barrier that currently makes a large-scale local refinery impractical: the depth of Guyana’s rivers.
- Shallow Waters: Guyana currently lacks the “draft” (water depth) to accommodate the massive Very Large Crude Carriers (VLCCs) required for high-volume refinery logistics.
- Port Evolution: The government is eyeing a “wider industrial buildout,” focusing on Crab Island in Berbice (Region 6). The vision is to link a future refinery with a deep-water port, expanded pipeline infrastructure, and Natural Gas Liquids (NGL) facilities.
Beyond the “Export-Only” Model
Minister Bharrat’s update signals a strategic departure from a simple “export-only” model for Guyana’s oil. As the world navigates the 2026 energy crisis triggered by the closure of the Strait of Hormuz, the push for regional refining has moved from a “good idea” to a “national necessity.” For the Guyanese government, the next 12 months will be about moving from technical assessments to concrete contracts, ensuring that the country’s crude oil doesn’t just pass by its shores—but returns to them as the fuel that powers the nation.
