ExxonMobil mulls LNG production from seventh project in oil-rich Guyana

Kevin Crowley, Bloomberg February 21, 2024

(Bloomberg) – Exxon Mobil Corp. is considering the potential to produce liquefied natural gas (LNG) in Guyana in what would be the first project of its kind in the world’s fastest-growing major oil basin.

A gas-focused development is one of three options being weighed by Exxon for its seventh Guyana project, country manager Alistair Routledge said in an interview in Georgetown Wednesday. The other two are additional oil developments from existing and new discoveries, he said.

Exxon will drill five wells in the south-east portion of the Stabroek Block, near the border with Suriname, this year to better understand what are “substantial resources” of gas, Routledge said. The company is also working on several production concepts and methods of shipping the gas to global customers.

“We do think that LNG needs to be in the mix because there’s no large market nearby within an economic range of pipeline infrastructure,” Routledge said. Exxon is “narrowing concept ranges” this year and should have a better idea of project timelines by 2025, he said.

Exxon plans to double oil production from Guyana to 1.2 MMbpd by 2027 from five approved projects and one slated for approval later this year. But the country’s government is keen to also monetize its large gas resources, which have been of secondary importance to oil, until now. Vice President Bharrat Jagdeo said Tuesday it’s imperative that Guyana develops its estimated 16 Tcfg resources quickly as the world transitions to cleaner energy.

“We believe that we can find enough gas there to now monetize it,” Jagdeo said. Exxon has “started looking at that and the signs are positive.”

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