gas
One of the structures in place for the imminent gas-to-energy project at Wales

Guyana advances gas-based industries to generate value from its resources

Guyana has unveiled three new proposed projects tied to its Gas-to-Energy project at Wales on the West Bank of Demerara. These include a US$300 million ammonia and urea plant, a gas bottling and logistics company, and a natural gas liquids (NGL) storage and marine offloading facility.

This is part of a broader strategy to monetize its natural gas, cut energy and fertilizer costs, and diversify industrial production.

The Office of the Prime Minister has invited proposals for the construction of the Guyana Ammonia and Urea Plant (GAUP), which will use up to 20 million cubic feet of gas per day from the second phase of the Gas-to-Energy project. The facility is expected to produce about 300,000 tons of fertilizer annually and should be ready for commissioning by 2028 – one year before additional gas supply becomes available for the Gas-to-Energy project’s second phase.

The administration intends for GAUP to be developed under a public-private partnership model, with an engineering, procurement and construction (EPC) contractor to design, build and operate the facility alongside a world-class technology licensor. The output will target both domestic and regional markets, including northern Brazil and the Caribbean, with the aim of lowering fertilizer prices and supporting agricultural productivity. Proposals are due by January 22, 2026.

The proposed site lies east of the combined-cycle power plant and NGL facility now under construction for the first phase of the Gas-to-Energy project. The new fertilizer plant will receive lean gas from Guyana Power and Gas Inc. (GPGI), a state-owned company.

At the same time, the government is seeking partners for a separate public-private partnership to establish a gas bottling and logistics company. According to a tender notice, the project will design, construct, and operate assets for bottling, transporting, and distributing liquefied petroleum gas (LPG) domestically.

The government hopes the initiative will lower household cooking-gas prices, with local demand equivalent to some three million 20-pound cylinders each year, worth an estimated $14 billion at retail prices. Proposals for this project are due by January 15, 2026.

Both ventures are intended to leverage gas streams supplied from the Wales facilities currently under construction, using the same feedstock from which electricity and natural gas liquids (NGL) will be produced. Together, they are part of Guyana’s first major line of projects targeting downstream gas-based manufacturing and domestic distribution from its own offshore resources.

Alongside these two initiatives, Guyana is also advancing plans for an NGL storage and marine offloading facility, which will serve as the export and storage hub for the liquids separated at Wales. The National Procurement and Tender Administration Board recently opened 12 bids from companies around the world, including several large Chinese and Indian engineering firms, to design and build the facility and its connecting pipeline.

The proposed complex will initially handle about 4,200 barrels of NGLs per day and can later be expanded to process an additional 5,900 barrels. It will complement the NGL separation plant now under construction for the Gas-to-Energy project’s first phase and provide the infrastructure necessary for large-scale storage and export.

The NGL storage and offloading facility, fertilizer plant, and gas bottling company are all intended for location at Wales, the site that has emerged as the nucleus of Guyana’s gas-industrial hub. Together, they represent the government’s evolving plan to integrate upstream gas production with downstream industries that can deliver wider economic benefits.

Guyana’s Gas-to-Energy project, the centrepiece of its natural gas ambitions, involves transporting 50 million cubic feet per day of gas initially from ExxonMobil’s offshore Liza field in the Stabroek Block to the Wales site via a massive pipeline. The gas is processed to remove liquids and used to power a 300-megawatt combined-cycle plant being built by a U.S.-based contractor. The first phase, targeted for completion in 2026, will supply the national grid, creating the conditions to slash power costs and emissions.

A second phase, tied to Exxon’s upcoming Hammerhead project, will supply up to 80 million cubic feet of gas per day starting around 2029. Vice President Bharrat Jagdeo has said construction of this additional infrastructure could take two years once contracts are awarded. Seven groups have already submitted proposals to develop Phase 2, though a final decision has yet to be announced.

Together, these stages will allow the government to dedicate part of the gas flow to electricity generation and part to value-added manufacturing. The government sees this integration as critical to reducing the country’s import dependence for fuel and fertilizer, while creating new export revenue streams from derivative products.

The public-private structure is also designed to attract international capital and technical expertise while maintaining state ownership of key infrastructure through GPGI. Investors are expected to bring proven technology and operational capacity, particularly for fertilizer production and LPG distribution.

The current set of projects forms a deliberate step toward building a diversified gas economy. By pairing the Gas-to-Energy project with industrial spin-offs like the GAUP, the gas bottling company, and the NGL terminal, the government is seeking to establish a base for manufacturing, logistics, and energy security in one corridor, setting Guyana on the path to having a network of industries to rival its sister state, Trinidad and Tobago. That country has seen its gas production, which is linked to its economic strength, dwindle over the years, opening up a potential gap Guyana can fill.

If realized as planned, the ammonia and urea plant alone could make Guyana a regional supplier of nitrogen-based fertilizer, reducing dependence on imports. Likewise, the gas bottling project aims to stabilize retail cooking-gas prices and ensure a reliable supply across the country.

For Guyana, which only began producing oil in 2019, the expansion of gas utilization marks a new phase in its energy development. The government’s Low-Carbon Development Strategy 2030 identifies natural gas as a transitional fuel that can underpin industrialization while supporting the shift to renewables. The government believes that cheaper energy and locally available fertilizer will strengthen sectors such as agriculture and manufacturing, delivering economic benefits beyond the oil industry.