Exxon’s Oil Boom Could Keep Guyana’s Gas at Home

Guyana has turned into something of an oil celebrity with billions of barrels discovered by Exxon off the coast of the tiny South American country. With the oil riches came gas, too, and there were plans to add LNG to Guyana’s export goods. Yet now the government is considering keeping the gas for the domestic market. Guyana’s crude oil exports are about to end the year on a high note and a daily rate of over 1 million barrels, according to a recent report by Bloomberg.

It only took the country 10 years to go from no oil production…

LNG Market Background

The global LNG market has undergone a structural transformation in recent years, with U.S. exports reshaping trade flows and providing consuming nations with greater supply optionality. European buyers have accelerated long-term LNG contracting following the disruption of Russian pipeline gas supplies.

New LNG liquefaction capacity — from the U.S. Gulf Coast, Qatar's North Field expansion, and Australian projects — is expected to add significant supply volumes through the late 2020s, with implications for long-term contract pricing and spot market dynamics.

What to Watch

Stakeholders will be tracking spot LNG cargo pricing in Asian and European markets, liquefaction plant utilization rates, and upcoming long-term supply contract negotiations as global LNG trade flows continue to evolve.