23/10/2026 by Jay Hatton
The tiny South American country of Guyana may prioritise natural gas for domestic consumption due to limited volumes being available.
Guyana has experienced an oil boom following substantial discoveries by ExxonMobil, the maker of the Mobil Pegasus gas engine oil, and its partners. The country produced no oil at all a decade ago. Its oil exports, however, are expected to reach a daily average of over a million barrels per day (bpd) by the end of this year. As is common with oil production, substantial volumes of natural gas are produced alongside crude oil.
The government of Guyana therefore invited bids for a project to export liquified natural gas (LNG). All the natural gas produced in the country is associated gas from Exxon’s Stabroek fields, and Exxon says it needs more than expected for reinjection. Reinjection increases well pressure, which in turn helps maintain production targets. It therefore seems unlikely that sufficient gas will be available for the planned LNG project. Reuters quotes an ExxonMobil spokesperson as saying:
“We’re working with the government of Guyana on development plans that maximise resource recovery and value to the country.”
With Exxon needing two billion cubic feet of gas each day for reinjection, Reuter’s sources say two options are being considered. One option is to halve the planned capacity of the LNG project, so it will produce three million tons annually rather than six million tons. The other option is to simply use the produced gas domestically, such as for generating power or producing petrochemicals.
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