ExxonMobil eyes domestic gas to maximise Guyana’s economic value

Liquified Natural Gas (LNG) is still on the table for discussion regarding Longtail and the monetisation of Guyana’s gas resources, President of ExxonMobil Guyana Limited, Alistair Routledge, has confirmed.

Longtail is the eighth offshore development project being eyed by the company, and according to Routledge, it holds Guyana’s most premium oil to date.

Speaking on a recent edition of the Starting Point Podcast, Routledge said that while the country’s other seven projects have produced black crude, the eighth is expected to produce condensate — which is higher in value.

He said that once the company receives the green light from the government, it will produce the most premium oil to date.

“We’ve been looking at all these potential uses of the nation’s gas resource and when you look at the economic benefits it’s clear that by using the gas to stimulate domestic industries it offers the country higher value. So, that is why we prioritised that as our area of focus. It isn’t to say that we’ve taken export of gas– whether pipeline or LNG off the table. It just means that we’re moving our focus to where we think would deliver the highest value to the country,” Routledge explained.

Longtail is expected to produce over 1 billion cubic feet of natural gas per day and around 250,000 barrels of condensate daily.

In terms of market value, Routledge noted that it is expected to do extremely well.

“It should attract a premium. That is part of the work that we’re doing today as we look forward to a full funding decision on the project– is understanding how the condensates from Longtail area field will compete on the market, but we do anticipate that they’ll attract a premium,” he said.

Routledge explained that condensate can be sold to refineries and generate one of the more high-end fuels and products.

The project is expected to last 30 years, and according to Routledge, the company wants to extract as much as possible to maximise the value of the resources of the Longtail reservoirs.