ExxonMobil Guyana President Alistair Routledge announced on Thursday that the development of a second offshore natural gas pipeline to Berbice remains contingent upon the commercial feasibility of several major industrial projects. The decision hinges on establishing a sustainable market for the gas that would justify the substantial infrastructure investment.
Speaking at a press conference, Routledge revealed that both ExxonMobil and the Guyanese government have received preliminary expressions of interest for multiple ‘anchor projects’ that would utilize the gas resources. These potential developments include an additional power generation facility, advanced data centers, and a bauxite-to-alumina processing plant, all intended to consume natural gas from the southeastern region of the Stabroek Block.
In a significant regional development, Routledge confirmed preliminary discussions with Suriname regarding potential pipeline sharing arrangements to achieve economies of scale. The Haimara development is projected to serve as the primary anchor for this initiative, with Pluma integrated into this development framework. The executive noted that remaining gas discoveries not incorporated in the Longtail development would be associated with the Haimara anchor project.
Routledge provided technical insights, explaining that Pluma contains gas condensate but is considered drier than Longtail. Consequently, ExxonMobil prefers developing other reservoirs before implementing a tie-back to Pluma to optimize condensate recovery.
Regarding the Hammerhead deposit, Routledge disclosed it contains heavier oil, with associated gas production estimated at 80-90 million standard cubic feet at peak operation. Rather than reinjecting this gas, it will be channeled into the existing pipeline supplying the Wales facility on West Bank Demerara.
The Guyana government had previously announced partial completion of the Wales power plant by year-end 2026. The comprehensive Wales development project, valued at $759 million, includes a natural gas liquids plant for cooking gas production. When accounting for all development works, including necessary soil stabilization measures, total project costs are approaching $3 billion.