President Irfaan Ali has announced a renewed effort to establish an oil refinery in Guyana, citing national security concerns amid global energy uncertainties and supply chain disruptions.
Guyana to Reconsider Oil Refinery
Addressing the Georgetown Chamber of Commerce and Industry on Thursday, President Ali stated that recent geopolitical tensions have reinforced the need for Guyana to strengthen its energy independence and resilience. He explained that while previous focus was on expanding fuel storage, current global developments necessitate a return to considering a refinery.
“Now, I believe we should return to the conversation of a refinery for national security,” President Ali told members of the business community.
The president underscored that instability in the Gulf region, particularly threats to the Strait of Hormuz, has exposed vulnerabilities in the global energy system and highlighted risks for fuel-importing nations like Guyana. Despite Guyana’s emergence as an oil-producing nation, the country remains heavily reliant on imported fuel, particularly for electricity generation.
The fuel bill for the Guyana Power and Light Inc. remains substantial and could increase with global price shocks. Investing in refining capacity, President Ali said, would provide greater control over fuel supply, pricing, and long-term energy security.
The renewed focus on a refinery is part of a broader strategy to build out national energy infrastructure, including the gas-to-energy project, which is expected to reduce reliance on imported fuels and lower electricity costs. President Ali emphasised the importance of collaboration between government and business to navigate the uncertain global environment and sustain Guyana’s economic growth.
“We are closely monitoring the situation. We are vigilant, we are responsible, and we stand ready to make the necessary adjustments,” he assured.
The initiative aims to secure Guyana’s economic future and reduce its exposure to external shocks in the volatile global energy landscape.
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