US company working with gov’t, ExxonMobil to monetise Guyana’s gas

A United States company, Fulcrum LNG, has been selected by the Government of Guyana to work alongside the administration and an ExxonMobil-led consortium to figure out how best to monetise natural gas resources.

President Dr. Irfaan Ali disclosed the company’s selection at a press conference on Thursday.

He, however, clarified that financial talks are not yet ongoing as the talks among the company, the consortium producing oil in the lucrative Stabroek Block offshore Guyana, and the government are still ongoing.

“This company’s proposal was evaluated as the best proposal in monetising the gas and adding to that, adding the value that would bring new opportunities and more opportunities for us.

“The three groups need to refine (the opportunities) and the company has to present a proposal and to see how all the pieces fit together,” President Ali told reporters gathered at his official residence in Georgetown, State House.

Fulcrum LNG was chosen after the government sought proposals for a 100 per cent privately-owned facility.

According to the Request for Proposals published in January, the Ministry of Natural Resources sought an investor to design, finance, construct and operate the “required gas infrastructure to support upstream developments” in Guyana. The open-access facility the government is eyeing should include the necessary pipelines to connect, as needed, to other infrastructure to monetise upstream gas resources.

As stated on its website, the company is a US-based energy firm “founded by experienced and industry- recognised professionals with more than two centuries of combined experience.”

The government has openly declared its interest in monetising whatever natural gas resources are offshore as quickly as possible. This is being done as the need to transition away from fossil fuels like diesel, oil and gas is continuously impressed upon governments globally.

Already, a 300 megawatt (MW) power plant is being built at Wales on the West Bank of Demerara. That power plant will be fuelled by natural gas brought onshore through a pipeline connecting the Wales area and the Stabroek Block.

There will also be a Natural Gas Liquids plant enabling the government to produce other products like cooking gas.

Production at two oil vessels offshore Guyana will grind to a halt for two weeks each in the coming months so that a natural gas pipeline meant to bring gas onshore can be connected, ExxonMobil Guyana President Alistair Routledge said in April.