Guyana Advances Second Gas Pipeline Project to Support Economic Diversification and Energy Security

Guyana President Irfaan Ali announced at the recent Energy Conference in Georgetown the near completion of a second gas pipeline that will transport natural gas produced offshore to Berbice on the eastern coast. This pipeline complements the nation’s first gas pipeline, due to begin operations by the end of 2026 near Georgetown, which will supply approximately 300 megawatts of electricity to a new power plant aimed at addressing chronic power shortages. The second pipeline is anticipated to transform a mid-scale project into a larger regional infrastructure scheme through collaboration with Surinam. This cooperation is intended not only to expand pipeline capacity but also to foster cross-border distribution of gas and energy, while stimulating shared industrial and energy projects.

Guyana’s fast-growing hydrocarbon sector, propelled by Exxon Mobil’s 2015 offshore discoveries, has elevated the country to the second largest oil producer in Latin America, with crude output projected to reach 900,000 barrels per day by late 2025. However, the government emphasizes harnessing natural gas to diversify the economy, targeting growth in manufacturing, agro-processing, and technology sectors. By expanding the use of domestic gas for power and industrial feedstock, Guyana aims to reduce dependence on crude oil revenues and generate broader socioeconomic benefits.

ExxonMobil has reaffirmed its commitment to Guyana’s gas infrastructure plans, aligning engineering and investment with government permits and market frameworks. The company’s leadership highlights the complexity of gas development compared to oil but views the reserves as an attractive monetization opportunity. As the government advances regulatory and investment frameworks, the pace of gas project execution is expected to accelerate. These efforts, including the newly proposed gas pipeline in Berbice, underpin Guyana’s broader agenda to increase energy security, spur industrial growth and establish the nation as a regional investment hub.