President Irfaan Ali has revealed that Guyana has resumed talks on establishing a local oil refinery, citing the need to strengthen the country’s energy independence as the world wrestles with the effects of the largest-ever global oil supply disruption.
Making the disclosure in a video statement on Wednesday, President Ali said the government is also in discussions about a fertilizer plant to serve both national and regional interests.
“We are in serious discussion back to have a refinery here in Guyana for national security and a fertilizer plant for national and regional security,” President Ali said.
The announcement marks a significant policy shift. Guyana had previously been focused on expanding its fuel storage capacity, with talks underway with U.S. company Curlew Midstream on a US$300 million investment deal to make cheaper refined energy products available locally. However, escalating geopolitical tensions and the current global supply shock have prompted the government to pursue a more self-sufficient approach.
Despite being a major oil-producing nation, Guyana still depends heavily on imported fuel, particularly for electricity generation — a vulnerability the President said recent global developments have made impossible to ignore.
President Ali pointed to ongoing investments as part of the country’s longer-term strategy to insulate itself from external shocks. Chief among these is the Power Plant and Natural Gas Liquids (NGL) Plant at Wales, which his administration says will cut the cost of energy by half and build the country’s internal resilience.
“In Guyana, the long-term investments that we are making in our own gas plant and gas bottling plant will see us building up internal capacity to withstand certain shocks because we will have our own natural gas,” he said.
The President also disclosed that he held talks earlier this week with Dominican Republic President Luis Abinader and other stakeholders on devising a regional plan to cushion the impact of the current disruption and its lasting economic consequences, noting that the entire world is reorienting its systems in response to the global supply chain breakdown.
Looking ahead, President Ali said his government’s gas-to-energy project will provide the country with LNG and fertilizer in the near future, with a second gas-to-energy project planned for Berbice over the next five years — a development he said will cement Guyana’s role as a major regional energy supplier.
“Long before this crisis, my government implemented several initiatives to make our gas energy more secure,” he said, referencing investments in solar and hydro energy, incentives for hybrid and electric vehicles, and support for agriculture processing and value creation.
President Ali assured that his administration is closely monitoring the evolving global situation and remains in constant communication with international partners, pledging that his government will continue to make decisions to protect the country and its people.
