Guyana may cut LNG export capacity in half as Exxon reserves more gas for oilfield reinjection
Guyana is weighing whether to cut its planned LNG export capacity in half — or walk away from the project entirely. Reuters reported on October 13, citing multiple sources familiar with the matter, that the review stems from ExxonMobil’s projected need for roughly 2 billion cubic feet per day of gas to reinject into offshore oilfields. That volume would leave little room for large-scale exports.
Guyana weighs shrinking or scrapping LNG export plans
Guyanese officials are now looking at two options: scale back the planned LNG facility significantly, or skip gas exports altogether and redirect available supply toward domestic power generation and petrochemical use. Neither path is what the government originally envisioned when it picked US developer Fulcrum LNG in 2024 to build and operate the country’s gas infrastructure.
The Fulcrum project was initially designed to deliver 6 million metric tons per annum (mtpa) of LNG export capacity. Under the revised scenarios being discussed, that figure could drop to as little as 3 mtpa — with room to expand later if supply conditions improve.
The most likely near-term outcome is a smaller LNG project, a delayed industrial buildout, and a domestic power plant that moves forward while everything else waits.
No final decision has been made, and that uncertainty is already frustrating potential investors who need clarity before committing capital to a project of this scale. Sources familiar with the matter say scaling back the LNG project is currently the most likely outcome. “Most likely,” though, is a long way from settled.
Why Exxon’s gas demand is constraining export supply
The root of the problem is fairly straightforward. The ExxonMobil-led consortium — which includes Chevron and China’s CNOOC — projects it’ll need roughly 2 billion cubic feet per day of gas for reinjection into its offshore oilfields. That’s the volume required to maintain reservoir pressure and maximize crude oil recovery across its government-approved projects.
Gas reinjection is a well-established technique in offshore oil production, and it isn’t optional. Without it, reservoir pressure drops, recovery rates fall, and production targets become harder to hit. For Exxon, meeting those targets at Stabroek sits at the center of its global growth strategy.
The consequence for Guyana is direct: whatever gas the consortium needs for reinjection isn’t available for export or domestic industrial use. With 2 bcfd potentially spoken for by the oilfields, the math leaves limited room for a large-scale LNG project.
ExxonMobil offered a measured response. A spokesperson told Reuters the company is “working with the government of Guyana on development plans that maximize resource recovery and value to the country,” adding that gas development requires supply and demand to be developed simultaneously. The company declined to provide specifics on available volumes or timelines.
Domestic priorities take precedence as industrial projects stall
With export ambitions under pressure, President Irfaan Ali’s administration is focusing on what it considers the most urgent need: getting a gas-fired power plant up and running to address domestic electricity demand. That project sits at the top of the energy agenda right now.
The knock-on effects for other industrial plans are significant. A proposed bauxite-to-alumina refinery, fertilizer production facilities, and large data center projects are all on hold — and these weren’t minor additions to Guyana’s development roadmap. They were central to the country’s vision of using its energy resources to industrialize quickly.
Earlier this year, Natural Resources Minister Vickram Bharrat told Reuters that Guyana was actively seeking greater clarity from ExxonMobil on what gas volumes would actually be available, and on what timeline. He declined to comment this week on where those discussions stand.
The situation is a real setback for Guyana’s broader ambition to become a regional energy powerhouse. The country has staked much of its development strategy on monetizing its gas reserves, and that strategy now depends heavily on how much supply Exxon can commit beyond its own operational needs.
Guyana’s oil and gas sector: Rapid growth, rising complexity
None of this takes away from what Guyana has built in a remarkably short time. Exxon’s Stabroek block holds a resource base of nearly 11 billion barrels of oil equivalent in recoverable reserves, with plans for up to eight offshore developments by 2030 — one of the most consequential offshore discoveries in recent memory and a cornerstone of ExxonMobil’s global production growth.
Guyana has become one of the fastest-growing oil and gas producers in Latin America following a series of major offshore discoveries over the past decade. For a country that ranks among the region’s least developed economically, the pace of transformation has been striking.
The expansion keeps going. Exxon’s fifth floating production facility arrived in Guyana in August 2026 and is expected to begin operations before year’s end. In May 2026, the consortium applied for government approval for Haimara — its ninth project in the country. Haimara, along with the eighth project, Longtail, is expected to develop non-associated gas and condensate resources. That distinction matters: non-associated gas isn’t tied to oil production, which means these projects could eventually ease the supply constraints currently squeezing the LNG plans.
What this means for Guyana’s gas future
The core tension here is one of sequencing and competing priorities. Guyana has abundant hydrocarbon resources, but the gas that could fuel export revenues is also the gas that keeps oil flowing — and right now, oil production comes first.
The most likely near-term outcome is a smaller LNG project, a delayed industrial buildout, and a domestic power plant that moves forward while everything else waits. Longer term, projects like Longtail and Haimara may unlock additional gas supply that reopens the export question. Guyana’s energy ambitions remain intact — just significantly more complicated than they looked a year ago.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
