For most of the past decade, Guyana’s petroleum strategy was relatively straightforward: discover oil, approve new developments and increase production.
That objective has largely been achieved. Four floating production, storage and offloading (FPSO) vessels are producing offshore, output is expected to exceed one million barrels per day by the end of 2026, and more projects are in the pipeline, led by ExxonMobil.
The country’s focus is now becoming more complex.
Increasingly, the question is not simply how much oil (and gas) Guyana can produce, but how that production can support economic activity onshore. The government’s strategy extends beyond crude exports to building infrastructure, industries and services that can generate value long after the oil leaves the country’s waters.
That shift can be seen across a growing list of projects and proposals linked to the petroleum sector.
Gas-to-Energy is the foundation
The centrepiece of Guyana’s next phase is the Gas-to-Energy project at Wales.
The development will bring associated natural gas from the Stabroek Block to shore through a pipeline, where it will be processed to supply a 300-megawatt gas-fired power plant and a natural gas liquids (NGL) facility.
The immediate objective is to lower electricity costs by replacing imported heavy fuel oil with domestic natural gas. Lower energy costs could improve the competitiveness of businesses across the economy while reducing the country’s fuel import bill.
Just as importantly, the project creates infrastructure that can support additional industrial development.
A pipeline, gas processing facilities and reliable power supply provide the building blocks for industries that require large and consistent amounts of energy.
Gas is expected to support new industries
Affordable natural gas opens opportunities that did not previously exist in Guyana.
Government officials and industry executives have repeatedly identified sectors such as fertilizer production, petrochemicals, manufacturing and data centres as industries that could benefit from lower-cost energy.
Natural gas liquids recovered through the Wales project could also support domestic and regional markets for products such as liquefied petroleum gas (LPG).
None of these industries will emerge automatically. Each requires private investment, commercial viability and supporting infrastructure. But together they represent the direction in which policymakers hope Guyana’s petroleum sector will evolve, from exporting raw resources to creating additional value at home.
New industrial zones are taking shape
The strategy is also geographic.
Rather than concentrating petroleum-related activity offshore, Guyana is planning industrial locations designed to support new investment.
At Wales, the Gas-to-Energy project is expected to anchor a broader industrial zone capable of attracting manufacturers and energy-intensive businesses.
Further southeast, the government has outlined plans for a Berbice gas hub that could support industries including fertilizer production, power generation and other gas-based manufacturing. President Irfaan Ali has also discussed complementary infrastructure such as a deepwater port and improved transport links to facilitate trade and exports.
Together, these projects and proposals suggest an effort to create industrial clusters around access to affordable energy.
Building a petroleum services economy
The country is also seeking to retain a larger share of the services that support offshore operations.
In the early years of oil production, many local opportunities centered on catering, transportation, accommodation and basic logistics.
Increasingly, procurement opportunities involve higher-value technical services, including equipment testing, calibration, inspection, fabrication, engineering support, environmental services and specialized maintenance.
This reflects the natural progression of a maturing petroleum industry. As offshore operations become more complex and long-term, demand grows for a wider range of specialized services that can be provided locally.
The Local Content Act and continued investment in technical education are intended to help Guyanese companies and workers compete for those opportunities.
Infrastructure is expanding alongside production
Supporting a larger petroleum economy requires more than production facilities.
Guyana is investing in systems that underpin the industry’s long-term operation, including expanded emergency response capability, the Guyana National Control Centre and transmission infrastructure to support the power plant, and training programs for a more specialized workforce.
These investments may receive less public attention than offshore discoveries, but they are essential to supporting larger volumes of production and increasingly sophisticated industrial activity.
They also reflect a shift in priorities. The conversation is moving beyond bringing oil to market toward managing a much larger and more integrated energy system.
Oil exports will remain the backbone of Guyana’s petroleum sector for years to come. Offshore developments continue to attract billions of US dollars in investment, and additional projects are expected to increase production further.
At the same time, the country’s longer-term strategy is becoming clearer.
Rather than treating oil as an end in itself, Guyana is laying the groundwork for industries and infrastructure that use petroleum resources to generate broader economic activity. Natural gas, industrial zones, manufacturing, petroleum services and supporting infrastructure all form part of that picture.
Many of these projects are still in development, and some will depend on future investment decisions.
