Over the next few years, President Irfaan Ali’s second term will see Guyana advancing key projects that place energy and infrastructure at the center of national development.
Hammerhead Approval
The Hammerhead discovery was announced in August 2018, the ninth in the Stabroek Block. Hammerhead-1 was drilled in a new reservoir, encountering approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to a depth of 13,862 feet (4,225 meters) in 3,773 feet (1,150 meters) of water. Exxon had considered Hammerhead for its fourth project but ultimately opted for Yellowtail. First oil is targeted for 2029.
Longtail Under Consideration
ExxonMobil anticipates making a final investment decision (FID) on the Longtail project in 2026. Longtail will target production of 1.2 billion cubic feet of gas per day (cf/d), a massive amount compared to the much smaller scale plans to tap associated gas from the Liza and Hammerhead fields. Those associated gas projects will target collective production of about 125 million cf/d. The Longtail production vessel is expected to have twice the gas compression ability of earlier units in the Stabroek Block.
Gas-to-Energy Project completion
Guyana’s Gas-to-Energy Project is a flagship initiative aimed at cutting electricity costs, reducing emissions, and boosting industrial development by harnessing natural gas from the offshore Stabroek Block. The project involves a pipeline that will transport up to 50 million cubic feet of gas per day from ExxonMobil’s Liza field to Wales on the West Bank of the Demerara River.
At Wales, the gas will feed a 300-megawatt (MW) power plant and a natural gas liquids (NGL) facility designed to produce cooking gas and other by-products. Expected to come online in 2026, the project is a partnership between the Government of Guyana and ExxonMobil, with the plant being constructed by the U.S.-based Lindsayca. It is projected to cut electricity rates by more than 50%, provide reliable energy for households and businesses, and lay the foundation for downstream industries, positioning Guyana as a regional energy hub.
Gas-to-Energy Phase II
Phase II aims to utilize an additional 75 million cubic feet per day (MMCFD) of rich gas to fill the 250 km pipeline from the offshore fields to Wales. Key components of Phase II include the construction and operation of a 250 MW combined-cycle power plant. This facility is expected to deliver 2,100 gigawatt-hours (GWH) of electricity annually, which will be sold to the Guyana Power and Light (GPL) under the PPA.
Additionally, the project will feature a Natural Gas Liquids (NGL) facility producing approximately 6,000 barrels per day of propane, butane, and gasoline. Excess lean gas, estimated at 30 MMCFD, will be provided to the government for use in downstream industries, such as fertilizer production. The project, which will be developed on 100 acres adjacent to the existing 300 MW integrated facility, will be 100% privately owned and financed.
Berbice Deepwater Port
International engineering giant Bechtel is working closely with the government to develop a deep-water port in Berbice, Region 6 (East Berbice-Corentyne). The facility is expected to play a central role in the country’s expanding gas development and regional trade infrastructure, particularly as Berbice emerges as a major logistics and industrial hub.
