Guyana is considering scaling back its planned liquefied natural gas project after ExxonMobil indicated that more offshore gas may be needed to support oil production, according to an exclusive Reuters report,
Reuters, citing two people close to the discussions, reported that the ExxonMobil-led Stabroek Block consortium expects to require about 2 billion cubic feet per day of gas for reinjection into offshore reservoirs. The gas is used to maintain reservoir pressure and support crude production from the consortium’s approved projects.
The higher reinjection requirement could leave less gas available for LNG production or focus available gas on domestic electricity generation and industrial projects, the sources told Reuters. No final decision has been made.
One option under consideration would see the proposed floating LNG development begin at up to 3 million tonnes per annum, compared with an initial capacity by as much as half.
Fulcrum LNG was selected by the Guyanese government in 2024 following a competitive process to work with the government and ExxonMobil on options for developing the country’s non-associated gas resources. Guyana’s government said at the time that Fulcrum ranked first among 17 proposals, but stressed that discussions were preliminary and that no project agreement has been signed.
ExxonMobil told Reuters that it was working with the government on development plans aimed at maximising resource recovery and value for Guyana. The company said gas supply and demand would need to be developed together. Fulcrum did not respond to Reuter’s request for comment.
Photo credit: ExxonMobil Guyana