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Exxon plans large-scale gas project in oil-dominated Guyana
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Exxon plans large-scale gas project in oil-dominated Guyana
Feb 19, 2025 9:35 AM

GEORGETOWN, Feb 19 (Reuters) - U.S. oil major Exxon

Mobil ( XOM ) 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

and China's CNOOC 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 that departed from Singapore this

week, will start operations in the third quarter, Exxon said.

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