Guyana plans to convert ExxonMobil gas to power domestic industry via new pipelines

Guyana looks to convert ExxonMobil gas into domestic industry fuel

Guyana is moving to use associated gas from ExxonMobil’s offshore fields to power an onshore industrial push, with government and company officials saying pipeline projects are central to that plan. President Irfaan Ali says a second gas pipeline at Berbice will be finalised very soon, building on a first gas‑to‑shore line due to start up later this year that is expected to feed roughly 300 megawatts to a new power plant near the capital. The government frames the gas projects as a bridge from crude revenue to broader manufacturing, agri‑processing and potential petrochemicals rather than an export‑only strategy.

ExxonMobil signals readiness on the offshore side but warns onshore work must catch up. Dan Ammann, the company’s upstream chief, says offshore pipeline infrastructure is in place while permitting, power‑plant construction, market rules and grid upgrades remain outstanding. ExxonMobil says it will invest as regulatory and commercial pieces fall into place, underscoring that private finance and company commitments are conditional on viable frameworks and clear permits.

Officials and analysts caution execution determines whether Guyana’s oil windfall delivers sustained industrial development. Authorities are exploring a partnership with Suriname to scale the Berbice project beyond domestic demand, but they face a narrow window to mobilise permits, financing, workforce training and supportive market arrangements. Stakeholders warn that without swift onshore investment and governance reforms, the country risks leaving value creation offshore and foregoing long‑term domestic benefits.

Middle East tensions push oil higher

Escalating U.S.‑Iran tensions lift crude prices, with benchmark U.S. crude rising about 1.9% and Brent mirroring the gain as market participants flag the risk of disrupted Middle East supplies. White House comments that a decision on possible military action may come within 10 days amplify supply concerns and keep energy markets on edge.

Macro backdrop adds policy focus

Investors in the region parse economic data and central‑bank moves for clues on policy direction. Japan’s headline inflation slips below the Bank of Japan’s 2% target for the first time in nearly four years, China’s loan prime rate decision is awaited, and U.S. readings such as the PCE inflation gauge and GDP are due, all likely to shape demand outlooks and energy market sentiment.