Commercial viability will determine processing of Guyana’s gas in T&T

The processing of Guyana’s gas to support Trinidad and Tobago’s dwindling reserves will be determined by private investors based on its commercial viability.
This is according to Vice-President Dr Bharrat Jagdeo, who made the statement during his weekly press briefing last Thursday.
Trinidad and Tobago confirmed earlier this month that its licence for the development of the Dragon and Manakin-Cocuina cross-border gas fields with Venezuela was revoked by the US.
The sister CARICOM nation had previously touted Guyana as a possible “plan B” in light of the US’s move.
Vice-President Jagdeo acknowledged the possibility of Guyana’s gas being sent to the Twin Island Republic but clarified that this option will be determined by the project’s investors.
“Through a public process, (Guyana) identified a company to work with ExxonMobil and the Government of Guyana to monetise the gas; if they choose to take the gas to Trinidad to process and that offers the greatest return to the project and thereby the greatest revenue to Guyana, then that is an option to them,” he told reporters.

Dr Jagdeo noted that there are several options available for monetising Guyana’s gas, but these have not yet been settled. These include bringing the gas onshore for industrialisation, supplying Brazil with energy, or engaging in the development of liquefied natural gas (LNG) offshore for direct distribution.
The Trinidad and Tobago option is just another to be explored, he said.
“If this is all privately determined, then they (investors) look at the return on each of these options and then settle. If we have X amount of gas, can we meet all of them, or which one gives the highest return in the ranking? And that’s how a commercial decision is made. We are not making a political decision on this; first of all, it has to be a commercial decision, but a commercial decision must seek to maximise the return to the investors and Guyana,” Dr Jagdeo urged.

He reminded that taxpayer money is not being used in the gas project, so the investors would be financing the project privately. As such, they will have a say in the marketing options for the commodity.
Despite Trinidad’s statements about utilising Guyana’s gas, the Vice-President said no formal communication has been made on the matter.