GUYANA’S LNG EXPORT AMBITIONS FACE UNCERTAINTY AS EXXON SEEKS MORE GAS FOR OIL PRODUCTION

GEORGETOWN, GUYANA | OCTOBER 14, 2026 — Guyana’s plans to develop a liquefied natural gas (LNG) export industry could be significantly reduced after ExxonMobil indicated that more offshore natural gas would be required to maintain and maximize oil production than previously anticipated.

According to an October 13 Reuters investigation, citing two people familiar with discussions between the government and ExxonMobil, Guyanese authorities are considering scaling back a proposed LNG export project or abandoning exports in favor of using available gas for domestic electricity generation and industrial development.

The reported development introduces uncertainty into Guyana’s plans to expand its energy sector beyond crude oil production, including proposals to export natural gas and support new industrial investments.

At the center of the discussions is ExxonMobil’s projected requirement for approximately two billion cubic feet of natural gas per day to be reinjected into offshore oil reservoirs. Gas reinjection helps maintain reservoir pressure and supports oil recovery, but it also reduces the amount of gas immediately available for other commercial uses.

The ExxonMobil-led consortium, which includes Chevron and China’s CNOOC, is developing Guyana’s offshore petroleum resources in the Stabroek Block. The reported gas requirements are linked to the consortium’s efforts to achieve production targets across government-approved offshore projects.

One project potentially affected is a proposed floating LNG development by Fulcrum LNG, the United States-based company selected by the Guyanese government in 2024 to develop gas infrastructure.

Reuters reported that the project’s originally contemplated export capacity of six million metric tons annually could be reduced to approximately three million metric tons in its initial phase, with the possibility of expansion at a later stage.

However, no final government decision on reducing the project’s capacity or abandoning LNG exports has been announced.

The government has been seeking greater certainty from ExxonMobil about the volume of gas available for commercial development, the cost of bringing it to market and the timelines required to establish the necessary infrastructure.

Natural Resources Minister Vickram Bharrat previously acknowledged the need for clearer information from ExxonMobil regarding future gas supplies. According to Reuters, he declined to comment this week on the current status of the discussions.

The uncertainty also affects other proposed industrial developments that would depend on reliable natural gas supplies. These include fertilizer manufacturing, a bauxite-to-alumina refinery and large-scale data centers, although the government has not formally announced the suspension of those projects.

President Irfaan Ali’s administration is reportedly prioritizing the completion and operation of a gas-fired electricity generation facility as part of its wider energy development program. The proposed domestic use of offshore gas is intended to support electricity generation and industrial activity.

ExxonMobil, responding to Reuters, said it was working with the government on development plans intended to maximize the recovery and economic value of Guyana’s petroleum resources.

The company also emphasized that natural gas development requires coordination between available supply and demand, underscoring the need for viable commercial projects and supporting infrastructure.

The reported discussions come as Guyana continues expanding offshore petroleum production and pursuing additional developments in the Stabroek Block. Future projects, including Longtail and Haimara, are expected to contribute to the development of gas resources.

The government has not publicly confirmed whether the LNG export proposal will be reduced, delayed or replaced by a domestic gas utilization strategy. The amount of natural gas ultimately available for export will depend on further technical assessments, commercial negotiations and government decisions.

Source: Reuters, October 13, 2026.