Exxon could start up standalone gas project offshore Guyana by 2029

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OilNOW
OilNOW
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President of ExxonMobil Guyana, Alistair Routledge, told Reuters that gas production in the Stabroek block may be possible in 2029 or 2030. 

“By early 2025, we will have done the exploration and appraisal work to understand how comfortable we are on the resource,” he is quoted as saying in a Feb. 21 article. “The earliest the consortium could expect to start gas production…could be 2029 or 2030.” 

There has been an intense push from the Guyana government for Exxon and its partners in the Stabroek block to focus more on natural gas. Thus far, the consortium has found around 17 trillion cubic feet in the 6.6-million-acre block, with high concentrations near the border with Suriname. 

Exxon mulling options for Guyana’s 7th Stabroek Block project; potential gas development in play | OilNOW 

Exxon agrees that gas is a “priority”. The company is focused on more gas appraisal this year. It has been looking very closely at gas development options, even evaluating which production facility would be best suited.

Head of Exxon’s Upstream Company, Liam Mallon told OilNOW in a Feb. 20 exclusive that building out a robust and lucrative gas sector takes time. He said, “It’s still early days in the exploration process,” pointing out that there’s a good amount of gas found so far, and that it will likely be monetized.

“We’re excited – it will take some time to properly de-risk and appraise…but we’re very lined up with the government’s intent and very supportive of the attempt around making gas a vital component of the future,” Mallon commented.

Guyana is now working to build out the framework for its gas industry and the Gas-to-Energy (GtE) project has started the ball rolling in a big way. The project is expected to allow for a 50% reduction in electricity costs and a new era of industrialization. Guyana and the Exxon-led Stabroek block consortium are executing the project. Exxon is responsible for building a pipeline to bring gas from the Liza 1 and 2 projects to onshore facilities. 

The Guyana government contracted US-based group CH4/Lindsayca to construct the integrated facility at Wales on the West Bank of Demerara. It entails a 300-megawatt (MW) power plant and a natural gas liquids (NGL) facility. The government has also invited proposals from private companies for the design, finance, construction, and operation of essential gas infrastructure to support offshore developments in the South American nation.

A national gas strategy is being drafted, which will serve as a roadmap for the country’s gas development endeavors.

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