Exxon is committed to moving quickly on Guyana gas project, but it needs demand sources for the gas, says executive

Exxon Mobil's chief upstream said that the company is 'committed' to moving quickly to develop natural gas resources in Guyana, but the government of the South American country must advance industrial projects if it wants to ensure a long-term demand for the gas. Exxon Mobil, the company that leads the oil consortium operating Guyana's Stabroek Block has been pressed by the 'Guyanese' government to develop and build natural gas projects, including petrochemical facilities and data centers, in order to diversify the country's energy industry beyond oil. Exxon Upstream president Dan?Ammann stated that the pipeline constructed by the company was ready to transport gas to Guyana. He was waiting on the completion of?power plants this year. Ammann stated that the supply and demand of natural gas must be coordinated in an interview conducted on the sidelines. He said that Exxon is in discussions with the Guyanese Government about?onshore industrial gas uses, but was not involved directly in any negotiations. Ammann stated that Exxon was "committed" to provide the government with the gas they need on the upstream, supply side. As soon as the demand picture changes, we will be prepared to meet that demand. Ammann says Exxon must understand how the Guyanese Government is developing industries that use natural gas. Ammann said that the government has a responsibility to build the industry and create an environment where people will want to invest. Exxon announced a plan in its early stages called "Wales Gas Vision", which aims to supply gas for onshore petrochemical projects and power plants. Since then, little progress has been made. Exxon, the Guyanese government and a group of potential investors were told in November that they needed to develop industrial plans for all parties to make decisions about investment at the same time. Ammann said that parts of the Stabroek Block are still under force majeure and not accessible for exploration due to their location in disputed territory. International Court of Justice of the United Nations is currently overseeing a case about border dispute. Ammann stated that the?decision will be an important step in determining if force majeure should be lifted. However, "it isn't the only consideration." "We are as eager as anyone to get back in those areas as quickly as possible." Sheila Dang, Kemol King and Julia Symmes Cobb edited by Nick Zieminski, Daniel Wallis and Julia Symmes Cobb.

(source: Reuters)