Guyana eyes domestic refinery as cornerstone of national oil company plans
Key Points(5)
- Guyana’s proposed national oil company would be centered on a domestic refinery aimed at lowering fuel costs and protecting the country from global price shocks, President Irfaan Ali has said.
- Ali clarified that the government does not envision creating a state-run company to produce crude oil or invest directly in offshore petroleum operations.
- Instead, the proposed entity would take a broader approach to Guyana’s fuel supply and energy security.
- Despite emerging as a major offshore oil producer, Guyana continues to import the refined gasoline and diesel consumed domestically, leaving consumers and businesses exposed to fluctuations in international fuel prices.
- Ali said the country’s existing storage capacity falls short of “the development aspirations of our country,” with options under consideration ranging from enough storage for 30 days of fuel supply to as much as 120 days.
Guyana’s proposed national oil company would be centered on a domestic refinery aimed at lowering fuel costs and protecting the country from global price shocks, President Irfaan Ali has said.
Ali clarified that the government does not envision creating a state-run company to produce crude oil or invest directly in offshore petroleum operations. Instead, the proposed entity would take a broader approach to Guyana’s fuel supply and energy security.
Despite emerging as a major offshore oil producer, Guyana continues to import the refined gasoline and diesel consumed domestically, leaving consumers and businesses exposed to fluctuations in international fuel prices.
“We cannot have crude oil and don’t have security of supply,” Ali said, adding that a domestic refinery would give Guyana greater control over its fuel supply and provide “some shield against shocks that are currently existing.”
Asked specifically about the proposed national oil company, Ali said it would operate “not as an investor but… one company that looks holistically at the entire ecosystem in terms of the supply.”
The government’s plans also include significantly expanding Guyana’s fuel storage capacity.
Ali said the country’s existing storage capacity falls short of “the development aspirations of our country,” with options under consideration ranging from enough storage for 30 days of fuel supply to as much as 120 days.
The push for greater refining and storage capacity comes as Guyana continues to expand its oil production and seeks to leverage the sector to strengthen its broader economy.
A domestic refinery could reduce the country’s dependence on imported refined petroleum products while providing greater security in the event of disruptions or volatility in international markets.
The government also sees potential for the project to extend beyond Guyana’s domestic needs.
Ali said that, in the longer term, expanded refining and storage capacity could position Guyana as a supplier of fuel to other countries in the Caribbean Community (CARICOM).
“We must be an important supplier in the energy market,” he said.
