Have you ever wondered what the much-discussed Berbice-focused gas development in Guyana is really about? Here’s what we know so far.
The Berbice Gas Development
The Berbice gas development is a potentially large-scale project aimed at producing and piping mainly non-associated natural gas from Guyana’s Stabroek Block to the eastern part of Guyana, East Berbice-Corentyne (Region 6), to support a major industrial hub.
The project would involve offshore gas production led by the operator of the Stabroek Block, ExxonMobil, with its co-venturers Hess (now owned by Chevron) and CNOOC. This would include the installation of a new pipeline system to bring gas to Region 6 for industrial use.
Why does the Berbice gas development matter?
The government has said it wants the benefits of Guyana’s oil and gas boom to be felt across the country, not concentrated in Regions 3 and 4, where earlier activity has occurred.
The administration has pushed for greater economic momentum in Region 6, as gas-based industrial development could create jobs and long-term economic transformation in ways crude oil exports do not.
While oil is produced and sold internationally, natural gas more often supports domestic industries such as power generation, fertilizer production, alumina processing, and data infrastructure. The government has also framed gas as a potential pathway for Guyana to become a regional energy supplier, including possible cooperation with Suriname and power export to Brazil’s Roraima state.
Where would the gas come from?
Sources could include:
- The proposed Longtail development
- A potential project in the Southeast Gas Area of the Stabroek Block
- Future gas volumes from the Liza field
- Future gas volumes from the Hammerhead field
Liza gas is expected to begin supplying the Wales Gas-to-Energy project in 2026. Hammerhead is also expected to supply Wales. Under Exxon’s gas vision, a future interconnection between pipelines could allow gas from these two fields to be transported to Berbice as well.
How is the Berbice project different from the Wales Gas-to-Energy project?
The Wales Gas-to-Energy project, located in Region 3, is Guyana’s first gas utilization initiative. It involves transporting gas from the Liza field to shore beginning in 2026.
Phase 1 of Wales will transport up to 50 million cubic feet per day (mcf/d) of gas. Phase 2, expected around 2029, would add up to 90 mcf/d, filling the pipeline’s capacity of roughly 125–130 mcf/d.
In contrast, the proposed Longtail project, one of the expected supply sources for Berbice, is targeting around one billion cubic feet per day (bcf/d) of gas production. Another potential development in the Southeast Gas Area could be similarly large or even larger.
The difference is not only scale but also structure. The Wales project is largely government-led onshore, including a power plant, natural gas liquids (NGL) separation facility, and associated infrastructure. In Berbice, the industrial mix is expected to be driven more by private and international investors, with the government facilitating investment rather than directly leading the facility.
Who are the upstream players?
The upstream development would be executed by the Stabroek Block, with the support of:
- ExxonMobil (operator)
- Hess (owned by Chevron)
- CNOOC
The operator would develop the gas and install the pipeline.
Who are the downstream stakeholders?
Minister of Natural Resources, Vickram Bharrat, told Reuters this month that the government received commitments from companies during the Guyana Energy Conference held February 17–20, expressing interest in investing in Berbice.
However, no specific companies have been publicly named. Potential investors would need to formalize proposals.
What industries could anchor the Berbice hub?
Exxon’s gas vision, discussed at recent Guyana Energy Conferences, has outlined several possible industries that could utilize large volumes of gas, including:
- An alumina plant
- A fertiliser plant
- A large-scale data center
- Other gas-based manufacturing facilities
The government has also indicated interest in establishing a 300-megawatt gas-fired power plant in Berbice.
The final industrial mix would depend on investor decisions.
At what stage is the project currently?
The project is in the planning stage.
Exxon has indicated readiness to develop gas resources. However, downstream demand and investor commitments must be aligned with upstream development so that investment decisions can be made together.
Is there a timeline?
No formal timeline has been announced for the Berbice gas development.
What questions remain?
Key open questions include:
- Which industries will ultimately be built in Berbice?
- Which investors will commit capital?
- The regulatory and fiscal framework governing the development
- Project costs
- Gas production and transport rates
- Start date for operations
