Guyana, Suriname can meet 11% of mid-2030s LNG supply gap – WoodMac

Must Read

OilNOW
OilNOW
OilNOW is an online-based Information and Resource Centre

Energy data analytics provider Wood Mackenzie said Guyana and Suriname can supply up to 12 million metric tonnes per annum (MMTPA) of liquefied natural gas (LNG) by the next decade. 

This output would account for approximately 11% of the anticipated 105 MMTPA global LNG supply-demand gap by 2035, which Wood Mackenzie projects as the volume still needed from projects that have not yet reached a final investment decision (FID).

This potential LNG supply would come from Guyana’s Haimara cluster and Suriname’s Block 52 (Sloanea), which Wood Mackenzie estimates collectively hold 13 trillion cubic feet of non-associated gas. The firm said these resources could be delivered at a break-even cost of around US$6 per mmBtu, excluding shipping and re-gasification costs. This is due, it said, to high well productivity and the experience of the project operators in LNG commercialization.

ExxonMobil is the operator of the Stabroek Block in Guyana with co-venturers Hess and CNOOC, while the Sloanea discovery in Suriname is operated by PETRONAS in partnership with ExxonMobil in Block 52.

Guyana, Suriname to remain engaged on potential gas collaboration

Amanda Bandeira, research analyst, Latin America Upstream Oil and Gas for Wood Mackenzie said, “Guyana and Suriname projects are firming up at an interesting time… US and Qatar LNG dominance is rapidly growing, but there is a supply window in the mid-2030s coming in part from the US President Biden’s pause on approving new US LNG export projects.”

WoodMac said Guyana and Suriname’s positioning also offers them a shipping advantage as regional LNG suppliers for the Caribbean and South American markets. However, there has been no definitive word from developers on whether they will proceed with such project(s). The developments remain under consideration, contingent on the finalization of commercial structures and fiscal terms that would ensure feasibility.

Suriname has agreed to provide a 10-year tax break for PETRONAS and ExxonMobil, to incentivise a gas project. Guyana has selected Fulcrum LNG, a U.S.-based startup, for discussions with ExxonMobil about the potential for an offshore gas development. Both governments are open to cooperation on gas development.

- ADVERTISEMENT -
[td_block_social_counter]
spot_img

Partnered Events

Latest News

Guyana, India to explore cooperation in hydrocarbons sector

Guyana and India signed memoranda of understanding (MoU) for cooperation in multiple sectors, including hydrocarbons. The signings were executed...

More Articles Like This