Exxon plans large-scale gasoline undertaking in oil-dominated Guyana

By Marianna Parraga and Kemol King

GEORGETOWN (Reuters) – U.S. oil main Exxon Mobil is planning to extend pure gasoline output and provide in Guyana by a large-scale undertaking introduced on Wednesday, following the federal government’s name for extra gasoline to gasoline onshore energy and petrochemical initiatives.

The “Wales Fuel Imaginative and prescient”, outlined by Exxon’s Guyana head, Alistair Routledge, is ready to supply gasoline for the manufacturing of fertilizers by a $1 billion pipeline accomplished final yr.

The federal government will take a portion of the gasoline equipped by Exxon for energy era and pure gasoline liquids manufacturing by its Fuel-to-Vitality undertaking.

Exxon’s Wales undertaking additionally requires the constructing of separate pipelines and a gasoline processing and liquefied pure gasoline (LNG) offshore facility. The ability will permit LNG exports and gasoline provide to Guyana’s Berbice space for producing fertilizers and alumina, Exxon mentioned.

The corporate didn’t give a complete funding determine for the undertaking.

The Exxon-led consortium in Guyana, during which U.S. Hess and China’s CNOOC take part, plans to ramp up gasoline output within the coming years, particularly by initiatives involving gasoline not related to oil, akin to Longtail.

A remaining funding choice for Longtail, which might be the group’s eighth undertaking within the South American nation and ship as much as 1.2 billion cubic ft per day (bcfd) of gasoline, is anticipated subsequent yr.

Exxon is “able to ship gasoline” to shore, Routledge mentioned at Guyana’s Vitality Convention.

Guyana is aiming so as to add pure gasoline to an power combine dominated by oil output, serving to to extend energy era and open new sources of income by exporting petrochemicals and LNG, power minister Vickram Bharrat mentioned earlier on Wednesday.

“There can be a shift in direction of gasoline utilization and monetization”, the minister mentioned on the convention in Georgetown. The federal government is anticipated to launch its bold gasoline technique this yr.

The nation’s fourth floating oil manufacturing facility, constructed by SBM Offshore that departed from Singapore this week, will begin operations within the third quarter, Exxon mentioned.

(Reporting by Kemol King and Marianna Parraga; Enhancing by Kirsten Donovan)