Guyana is considering a national oil company built around a domestic refinery and the wider fuel supply chain, rather than a state-run upstream producer investing directly in oil production.
President Irfaan Ali clarified the government’s thinking on the proposed entity this week, saying the focus would be on strengthening fuel security and reducing Guyana’s exposure to global price shocks.
Although Guyana is producing increasing volumes of crude oil offshore, the country continues to import the refined gasoline and diesel used domestically. Ali said a refinery could Guyana greater control over its fuel supply and provide some protection from disruptions in international markets.
Asked about the proposed national oil company, Ali said it would not be designed as an investor in oil production. Instead, the entity could take a broader role across the domestic fuel supply system.
The government is also considering an expansion of Guyana’s fuel storage capacity. Ali said options under consideration range from enough storage to cover 30 days to as much as 120 days of supply.
Over the longer term, the refinery and expanded storage capacity could also support Guyana’s ambitions to supply refined petroleum products to other Caribbean markets. Ali said the country should position itself as an important supplier in the regional energy market.
Further details on the proposed refinery, including its capacity, cost and development timeline, have not yet been announced.