Amsterdam, November 8, 2024– Research agency Wood Mackenzie reports that Suriname and Guyana could together produce 12 million tons of liquefied natural gas (LNG) annually.
This could also be supplied at a competitive price.
Demand for LNG is expected to increase at the end of this decade, as the industry increasingly switches from coal to natural gas, which could significantly reduce greenhouse gas emissions.
The switch to natural gas can reduce emissions by up to 50%, which is important in the global energy transition.
Guyana and Suriname are profiling themselves as new hubs for oil and gas exploration. Major international energy companies, including Exxon Mobil and TotalEnergies, have already invested billions in projects in this region.
The report shows that Suriname’s offshore Block 52 and the Haimara cluster off Guyana together hold some 13 trillion cubic feet (tcf) of pristine gas reserves.
The estimated production cost of this natural gas is $6 per million British thermal unit (MMBtu), which Wood Mackenzie analysts say compares favorably with other global suppliers.
Global demand for LNG is expected to remain significant through 2035, with a shortfall of 105 million tonnes per year still to be filled.
Although the United States and Qatar currently hold leading positions in the LNG market, they face obstacles in increasing their supply.
In the US, this is partly due to President Biden’s decision to temporarily suspend new LNG export projects, potentially creating room for new players such as Suriname and Guyana.
However, uncertainties remain around these developments.
Wood Mackenzie’s office points out that questions remain about the commercial structure and fiscal terms of the projects.
These factors will determine how successful the two countries’ LNG ambitions can be.
