US$2B pipeline key to ExxonMobil’s proposed second gas project in Guyana

The president of ExxonMobil Guyana, Alistair Routledge, says a second gas-to-energy (GTE) project is being pursued in Berbice, with early estimates suggesting the pipeline needed to bring natural gas onshore could cost more than US$2 billion.

Speaking with reporters, Routledge said the cost of a similar pipeline linking the Liza Field to Wales provides a baseline for projections.

“As you know, it costs roughly a billion dollars to lay a pipeline and put the risers in to supply gas from the Liza field to Wales in Region Three. To do similar for Berbice in larger volumes, a larger pipeline could easily be two billion dollars or more. (It’s) not a small investment,” Routledge told reporters.

He cautioned, however, that the figure remains a rough estimate.

“Don’t take that to the bank. That’s an order of magnitude. I’m just saying the pipeline that we would intend to build would be larger than the 12-inch pipeline for the Liza Field connection to Wales. And then you see inflation over the years because that was installed in ‘24. I want to set your expectation; it won’t be a one billion US dollar pipeline. It’s going to be more than that.”

Routledge said specifications for the proposed pipeline are still being developed, noting that discussions are underway with the Government of Suriname on the possibility of sharing infrastructure.

“It could be economies of scale to do that,” he said.

The ExxonMobil Guyana head also pointed to significant offshore gas reserves, with the company viewing the Haimara development as a potential anchor for the second GTE project.

However, he acknowledged that bringing the gas onshore will depend on the development of major projects capable of utilising the supply.

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“We can see real interest in building a domestic gas market, which, in the early stages, will require us to have some anchor projects. These are projects large enough to give us the demand, from an offshore gas supply point of view, to make it worthwhile investing in significant infrastructure,” Routledge said.

He added that there is growing interest from foreign investors in large-scale developments in Berbice that could support the viability of the project. Among the proposals being considered by the Government of Guyana and ExxonMobil are data centres, power generation facilities, and bauxite-to-alumina plants.

The Guyana government has been signalling plans for a second gas-to-energy project in Region Six, aimed at supporting industrial expansion, including power plants, a data centre, and an alumina plant, among other heavy industries.