The $2 billion U.S.-built Gas-to-Energy project represents the “largest foreign investment in Guyana’s history,” according to U.S. Assistant Secretary of State for Western Hemisphere Affairs, Brian A. Nichols.
During a December 17 foreign press briefing on U.S. priorities in the Western Hemisphere, Nichols highlighted the scale of U.S. investment in Guyana’s oil and gas sector, driven by major players like ExxonMobil.
He confirmed that in November, the U.S. Export-Import Bank gave initial approval for a US$500 million loan guarantee to support the US$2 billion U.S.-built gas-to-energy project.
With or without U.S. Exim Bank loan, Guyana’s gas project to go ahead | OilNOW
It will harness offshore natural gas extracted by Exxon, delivering 50 million cubic feet per day to a 300-megawatt onshore power plant. This facility is expected to reduce electricity costs by 50% and significantly cut carbon emissions by replacing heavy fuel oil as the country’s primary energy source.
During a press conference on November 28, Guyana’s Vice President Bharrat Jagdeo said that the EXIM Bank’s loan guarantee will cover U.S.-sourced exports related to the project and offer retroactive financing, reimbursing funds previously allocated by Guyana’s treasury. The loan guarantee has entered a 30-day Congressional notification process in the U.S., after which EXIM Bank’s board will consider final approval.
While offshore pipeline installation has been completed, onshore construction continues amid ongoing discussions between the government and contractors regarding timelines and costs. The project’s success is set to position Guyana as an energy powerhouse in the Western Hemisphere, attracting increased foreign investment which has seen a 64% increase for 2023 alone, according to the Economic Commission for Latin America and the Caribbean (ECLAC).
According to ECLAC the significant rise in investment inflows to Guyana, positions it as one of the most attractive destinations for foreign capital in the Caribbean region and key player in the global energy market.
Exxon has made over 30 discoveries in Guyana’s Stabroek Block, totaling more than 11.6 billion oil-equivalent barrels. The company holds a 45% stake in the block, with Hess holding 30% and CNOOC holding 25%. Exxon has three developments in operation within the Stabroek Block, with a fourth, Yellowtail, set to launch in 2025, which is one of the largest investments made in the country.
Nichols said that U.S. companies have invested more than US$15 billion in Guyana between 2021 and 2024, highlighting that the Gas-to-Energy project is a cornerstone of these efforts.
Read more about the Gas-to-Energy project here: Guyana’s Gas-to-Energy project (The basics) | OilNOW
