An ExxonMobil-led liquid natural gas (LNG) development could be a possibility, with further assessment of what lies in Guyana’s Stabroek Block. That point was made by Exxon’s Vice President of Global Exploration, John Ardill during a recent discussion with energy expert Mark Mills at RealClear’s 2024 Energy Future Forum.
“There will be six….[floating production, storage, and offloading vessels] in Guyana, with no routine gas flaring. All of the natural gas is reinjected and used to enhance oil recovery and we may potentially build some LNG facilities once we fully understand the resource,” he stated.
The Guyana government has turned its attention to developing its gas resources, which currently stand at 17 trillion cubic feet.
The government wants Exxon to be an integral player, according to Vice President Bharrat Jagdeo. Authorities recently identified U.S. start-up Fulcrum LNG to work with Exxon to come up with a plan for the development of the gas. The government had previously noted that gas development was “not an immediate priority” for Exxon. Consequently, the administration began a process that led to selecting Fulcrum as a partner, potentially handling the activity independently. Now, both the government and Exxon are aligned.
Exxon, Fulcrum, and a Guyana government technical team are expected to deliberate on the potential project, with hopes for an agreement to be signed in 2025.
The project would be the first standalone gas development offshore Guyana.
Thus far, Exxon and its Stabroek Block partners have sanctioned six oil developments with three already producing 630,000 barrels per day (b/d). A seventh project is now in the application phase.
