Guyana, Suriname could supply 12M tons/year of LNG in the 2030s – WoodMac

Guyana and Suriname could supply as much as 12M metric tons/year of liquefied natural gas by the next decade, according to a new report Monday by Wood Mackenzie.

Suriname’s offshore Block 52 and Guyana’s offshore Haimara cluster are estimated to hold 13T cf of discovered non-associated gas, the report said.

The sources could deliver the potential LNG at a breakeven cost of $6/MMBtu, the analysts said, adding that the global market still needs 105M tons/year of pre-final investment decision LNG to fill the supply/demand gap by 2035.

“U.S. and Qatar LNG dominance is rapidly growing, but there is a supply window in the mid-2030s coming in part from President Biden’s pause on approving new U.S. LNG export projects,” according to Wood Mackenzie analyst Amanda Bandeira.

“In this environment, Guyana and Suriname can offer a new cost-competitive LNG supply source and serve as regional suppliers… and also on par with U.S. Gulf and West Africa projects to deliver to the main demand centers in Southeast Asia,” Bandeira says.

Exxon Mobil (NYSE:XOM) is the first and largest oil producer in Guyana, and is the operator of the Stabroek and Canje Blocks offshore.