There are approximately three Suezmax-sized cargoes that load in Guyana each month, a pattern seen since October 2020, according to cFlow, an S&P Global Platts trade-flow software. These cargos are lifted for ExxonMobil, operator at the Stabroek block, co-venturers Hess and CNOOC, and the Guyana government, representing each stakeholder’s share of crude from the Liza Phase 1 Development.
According to Platts, Guyana’s Suezmax loadings compete with four cargoes seen loading at the Port of Covenas, Colombia.
“This trend began in 2020, as the Liza floating production storage and offloading vessel ramped up to a nameplate capacity of 120,000 b/d in December 2020, after being only a year into operation,” Platts said.
Suezmax loadings of Liza crude entered the market at a time when typical Caribbean loadings have slowed amid US sanctions on Venezuela that were imposed in January 2019, which has left Covenas the only major export port in the region.
Production out of the region is only expected to grow further, as ExxonMobil’s second and third FPSOs for Guyana are under construction and are set to come online in 2022 and 2024, respectively.
Analysts believe that increased trade flows out of Guyana could combat depressed market rates amid the volatile global pandemic environment.