ExxonMobil Gas Needs May Shrink Guyana LNG Project

ExxonMobil informed the government of Guyana that it requires approximately 2 billion cubic feet of offshore gas per day for reinjection into oilfields to meet crude output targets. This requirement exceeds previous expectations and may constrain the supplies available for liquefied natural gas exports.

The gas shortage could force Guyana to shrink its planned LNG project or abandon exports entirely to prioritize domestic power and petrochemical needs. The administration of President Irfaan Ali is considering reducing the capacity of a project led by Fulcrum LNG from 6 million metric tons per annum to 3 million metric tons per annum.

While the government prioritizes the operation of a gas-fired power plant, other industrial initiatives, including a bauxite-to-alumina refinery and fertilizer production, may face delays. ExxonMobil stated it is working with the government on development plans to maximize resource recovery and value to the country.