High fuel prices linked to geopolitical tensions in the Middle East have renewed debate in Guyana on the need for a refinery. The government, however, is taking a measured approach, tying any such move to broader infrastructure and industrial planning.
To put it plainly, there will be no refinery without a deepwater port. Guyana has not yet decided whether to build or support a refinery project, but the government linked any such move to critical infrastructure needs, Natural Resources Minister Vickram Bharrat explained recently.
Speaking on the April 16 edition of the Guyana Dialogue, Bharrat said no firm decision has been taken between pursuing refining options in Guyana or supporting efforts to revitalise Trinidad and Tobago’s refinery.
“No decision has been taken yet between Guyana or Trinidad. It is just at the stage where we are still in talks,” he said, adding that a key factor in any arrangement with Trinidad would be whether its refinery can be brought back into operation through new investment.
Guyana, which exports all of its crude, does not refine fuel domestically and relies on imports of refined products, leaving it exposed to global oil price swings. Recent tensions involving the United States, Iran and Israel have pushed up prices and disrupted supply chains, renewing domestic calls for a refinery to improve energy security.
Bharrat said interest in a potential refinery partnership has also come from the Dominican Republic, which has indicated it remains willing to invest in a project capable of processing around 30,000 barrels per day.
However, he stressed that any decision to build a refinery in Guyana would depend on enabling infrastructure, particularly the development of a deepwater port to accommodate large vessels.
“In order to build a refinery in-country, it must be supported by a port, a deepwater port in particular,” Bharrat said, noting that current river depths limit access for large ships.
The government has identified Crab Island and its surrounding environs, in Region Six, as a potential site for a deepwater port, a refinery, and the landing point for a second natural gas pipeline linked to future developments in the Stabroek Block.
The location is part of a broader vision for an industrial hub that could support expanded energy and manufacturing activity, including projects tied to ExxonMobil’s proposed Longtail and Haimara projects.
Guyana previously invited expressions of interest for a refinery but did not advance to a decision, despite engagement with potential partners. The government has been careful to weigh the long-term viability of refining against global energy transition trends and the country’s positioning as a low-carbon economy.
Guyana’s vast forests absorb more carbon than the country emits, underpinning its strategy to balance oil production with environmental stewardship. Any decision on refining will have to be guided by how it fits into Guyana’s broader economic strategy and environmental philosophies.