Exxon plans large-scale gas project in oil-dominated Guyana
GEORGETOWN, Feb 19 (Reuters) - U.S. oil major Exxon Mobil (XOM.N), opens new tab is planning to increase natural gas output and supply in Guyana through a large-scale project announced on Wednesday, following the government's call for more gas to fuel onshore power and petrochemical projects.
The "Wales Gas Vision", outlined by Exxon's Guyana head, Alistair Routledge, is set to provide gas for the production of fertilizers through a $1 billion pipeline completed last year.
The government will take a portion of the gas supplied by Exxon for power generation and natural gas liquids production through its Gas-to-Energy project.
Exxon's Wales project also requires the building of separate pipelines and a gas processing and liquefied natural gas (LNG) offshore facility. The facility will allow LNG exports and gas supply to Guyana's Berbice area for producing fertilizers and alumina, Exxon said.
The company did not give a total investment figure for the project.
The Exxon-led consortium in Guyana, in which U.S. Hess (HES.N), opens new tab and China's CNOOC (600938.SS), opens new tab participate, plans to ramp up gas output in the coming years, especially through projects involving gas not associated with oil, such as Longtail.
A final investment decision for Longtail, which would be the group's eighth project in the South American country and deliver up to 1.2 billion cubic feet per day (bcfd) of gas, is expected next year.
Exxon is "ready to deliver gas" to shore, Routledge said at Guyana's Energy Conference.
Guyana is aiming to add natural gas to an energy mix dominated by oil output, helping to increase power generation and open new sources of revenue by exporting petrochemicals and LNG, energy minister Vickram Bharrat said earlier on Wednesday.
"There will be a shift towards gas utilization and monetization", the minister said at the conference in Georgetown. The government is expected to launch its ambitious gas strategy this year.
The country's fourth floating oil production facility, built by SBM Offshore (SBMO.AS), opens new tab that departed from Singapore this week, will start operations in the third quarter, Exxon said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
an hour ago
- Telegraph
French forced to rescue British charging company as drivers shun EVs
A UK car charging company is to be rescued by French energy giant EDF, after a downturn in demand for electric vehicles (EVs) left it struggling to survive. On Thursday, EDF said it would buy Pod Point in a cut-price deal to save the British company. The energy giant said a takeover was the 'only realistic prospect' of allowing Pod Point to keep operating. Pod Point, which has chargers available at places such as Tesco and McDonald's, is the third-largest charging group in the UK, operating 5,600 fuelling stations, according to Zapmap. Government data this week showed there were around 80,552 charge points across the country, up from 62,418 last year. The company was founded in 2009 and grew rapidly before listing on the London stock market with a price tag of £350m in 2021. However, Pod Point has since disappointed with lacklustre performance. Shares have crashed 94pc from its debut. The deal underscores the disappointing demand for EVs among British drivers amid fears about depreciation and reliability.
Reuters
2 hours ago
- Reuters
Traders boost bets on Fed rate cuts after PPI, jobless claims data
June 12 (Reuters) - Futures that settle to the Federal Reserve's policy rate reflected rising bets that the U.S. central bank will deliver a pair of back-to-back interest rate cuts starting in September, after government data on Thursday showed US weekly jobless claims were steady at elevated levels. A separate government report showed producer prices rose 2.6% in May from a year earlier, in line with economists' expectations. Before the reports, rate-futures prices had reflected bets the Fed would deliver a first rate cut in September to be followed by one in December.
Reuters
2 hours ago
- Reuters
US producer prices rebound less than expected in May
WASHINGTON, June 12 (Reuters) - U.S. producer prices increased less than expected in May, restrained by lower costs for services like air fares. The producer price index for final demand rebounded 0.1% last month after a revised 0.2% decline in April, the Labor Department's Bureau of Labor Statistics said on Thursday. Economists polled by Reuters had forecast the PPI rising 0.2% after a previously reported 0.5% drop in April. In the 12 months through May, the PPI advanced 2.6% after rising 2.5% in April. Data on Wednesday showed consumer prices increased marginally in May, curbed by cheaper gasoline and airline fares amid cooling demand. But economists expect inflation will heat up in the second half of the year as tariffs-related price hikes filter through to goods. The Federal Reserve is expected to keep its benchmark overnight interest rate in the 4.25%-4.50% range next Wednesday. The U.S. central bank is expected to resume monetary policy easing in September.
