Guyana and Suriname Could Supply 12Mn Tonnes of LNG Annually in the 2030s

• Guyana and Suriname could supply 12M metric tonnes of liquefied natural gas annually at a competitive price by the next decade, according to a report by global renewables, energy and natural resources data provider Wood Mackenzie.
• LNG demand is expected to spike by the end of the decade as industries switch from highly polluting coal to gas, which can cut greenhouse gas emissions by as much as half.
• With this in mind, Guyana and Suriname have emerged as hotbeds for oil and gas exploration, with energy majors such as Exxon Mobil, and TotalEnergies, committing billions of dollars for new projects.
• Suriname's offshore Block 52 and Guyana's offshore Haimara cluster are estimated to hold 13 trillion cubic feet (tcf) of discovered non-associated gas^[1], according to the report by the commodities research group. Together, the countries could deliver the potential LNG at a breakeven cost of $6 per million British thermal units, Wood Mackenzie analysts said.
• Importantly, the new gas projects could provide supplies at a time when the global market still needs 105 million metric tonnes per annum of LNG to fill the gap between supply and demand by 2035, the report added.
• If realised, the LNG project could provide substantial economic benefits for both Guyana and Suriname by diversifying their energy exports beyond oil and supporting long-term growth. However, these developments are still not certain as there are some questions related to the commercial structure of the projects and fiscal terms, the report said.

(Source: Reuters)

 

^[1] Non-associated gas refers to natural gas sourced from a conventional gas field that has no crude oil or has such minimal amounts that it cannot be economically extracted.