Guyana may scale back LNG plans as Exxon needs more gas for its wells, sources say
XOM•Guyana is weighing a smaller LNG project or using gas for domestic purposes after Exxon said it may need about 2 billion cubic feet per day for oilfield reinjection. The project, initially planned for 6 million metric tons per year, may start at up to 3 million.
1. Gas needs constrain exports
ExxonMobil has told Guyana it will need more offshore gas than officials expected to maximize oil production, potentially leaving less gas for LNG exports. The Exxon-led consortium forecasts it will require about 2 billion cubic feet per day for reinjection into oilfields to meet crude output targets at approved projects.
2. Smaller project considered
Officials are weighing whether to shrink a planned LNG project or use the gas for domestic power and petrochemical facilities instead of exports. The project proposed by Fulcrum LNG was initially planned for 6 million metric tons per year, but may start at up to 3 million and expand later, sources said. Scaling it back is the most likely plan, though the government has not made a final decision.
3. Domestic priorities
One source said the administration is focused on getting a gas-fired power plant running soon, while a proposed bauxite-to-alumina refinery, fertilizer production and large data centers are likely on the back burner. Exxon said it is working with Guyana on development plans that maximize resource recovery and value, and that gas development requires supply and demand to be developed at the same time.
