Fuel shortages across Guyana, which disrupted supply at several gas stations, have brought renewed attention to the country’s fuel supply structure, raising the question again of whether a domestic oil refinery is needed or whether alternatives such as imports and reserves remain sufficient.
The shortages coincide with disruptions in global oil markets linked to the ongoing conflict involving Iran, which has impacted shipments through the Strait of Hormuz, a route that carries a significant share of the world’s oil trade.
The question of building a refinery has been under consideration since 2022, when the government issued a Request for Proposals for a 30,000-barrel-per-day facility at Crab Island, Berbice. Vice President Bharrat Jagdeo, the lead policymaker in government on oil and gas, outlined the purpose at the time. “This is for national security purposes to have energy security at home where we don’t run out of gas or diesel or anything like that, we are pursuing this refinery,” he said.
The project was designed to be fully financed and operated by the private sector. The government offered land, tax incentives, and access to crude from its share of profit oil, while maintaining no ownership role for itself.
By 2023, the economic case was framed around reducing dependence on external refining. Minister of Natural Resources Vickram Bharrat said, “If we have it in-country, then quite honestly, it makes no sense that we refine out of Guyana because we still have to take it to another country, have it refined and then bring back those products again, rather than doing it right here.”
Investor interest followed. Multiple international firms submitted proposals, later narrowed to five. Finance Minister Ashni Singh said the shortlisted investments could exceed US$1 billion.
Despite this, at the time, the government was still discussing options at a policy level. In April 2023, Jagdeo said, “We have not made a decision as to whether we’ll go with the project as yet. We’ve not made a decision at the policymaking level.”
A separate proposal later emerged involving the Dominican Republic for a 50,000 b/d refinery, raising questions about scale and direction. Jagdeo clarified, “We don’t have capacity for two refineries now. There shall be, if that project goes forward, one refinery.”
By 2024, the government began weighing an alternative for energy insecurity: strategic reserves of refined products. Jagdeo said the economics would guide the choice. “If you do have strategic reserves, it may kill the economic justification for having a refinery,” he said, while confirming that both options remain under review.
The case for a refinery has centered on control over supply. Processing crude locally would reduce exposure to external shocks, limit reliance on imports, and support steady fuel availability for transportation, power generation, and industry. It would also allow Guyana to retain more value from its oil production rather than exporting crude and importing finished products.
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That argument has been reinforced in 2026 as production offshore approaches one million barrels per day, while the country continues to depend on imported fuels. Nicholas Deygoo-Boyer, Director of Vreed-en-Hoop Shorebase Inc., said the imbalance remains a concern. “We are a large producer of crude oil. Still, we do not control our fate or our destiny in terms of refined products,” he said.
He said refining locally would provide greater certainty during disruptions. “Having a refinery definitely gives you far more control over your fate in terms of, well, not being subject to shocks.”
The decision now centers on whether refining crude in-country can provide more reliable fuel access and greater economic return than relying on imports or building strategic reserves, as production continues to rise and exposure to external supply disruptions remains a constant risk.
