Guyana and Suriname: a new powerhouse in LNG? How South America can surprise the global market by 2030

Written by Caio Aviz

Published 13/11/2024 às 12:18

LNG exploration platform at sunset in the ocean with the phrase "New LNG powers in South America!" — Liquefied natural gas (LNG) platforms in the ocean at sunset, representing the development of the sector in South America.

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Guyana and Suriname poised to dominate LNG, while Brazil has yet to explore the Equatorial Margin

Guyana and Suriname are poised to surprise the global LNG industry with their immense offshore reserves. If these countries invest in specific regulations and incentives, they could become benchmarks in natural gas exports in the coming years. Therefore, everything indicates that they will approach the level of major exporters such as the United States and Qatar if they continue to take advantage of this potential.

Reduced costs and geographical advantage

With abundant reserves and a strategic location, Guyana and Suriname are able to offer LNG at competitive costs to all of Latin America, the Caribbean and even Asia. This allows them to benefit from lower transportation costs and an advantageous proximity, essential to meet the growing Asian demand, which tends to increasingly seek cleaner alternatives.

Rapidly expanding oil and gas production

Guyana already has significant production in the Stabroek block, which is operated by ExxonMobil, and Suriname is moving forward with the TotalEnergies GranMorgu project. These numbers are impressive and indicate a promising scenario for these countries, which, by diversifying their production, are positioning themselves as new giants in the energy industry.

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Natural gas reserves: the next big bet

In addition, Guyana and Suriname have large reserves of natural gas, which attracts interest of companies such as Petronas. Thus, it is likely that these countries will move forward with floating LNG infrastructure, which could further boost their export capacity, especially to Asia and Latin America.

Oil platform at sea with the caption "Guyana could overtake all economies in the world"

Regulatory challenges to overcome

However, regulatory challenges and the absence of clear fiscal policies may still hinder the development of the sector. Therefore, to secure investment, both countries need to establish a transparent regulatory framework, which is essential to drive projects and meet global demand for LNG competitively.

A new opportunity for Latin America

With the potential to consolidate by 2030, Guyana and Suriname will be able to meet the growing global demand for LNG and thus strengthen the energy market in Latin America. With this, the LNG sector in the region can reach a new phase, competing with large exporters and benefiting the entire local economy.

The transformative potential of Guyana and Suriname

In this way, Guyana and Suriname are poised to transform the global LNG market with their abundant reserves, geographic proximity and focus on incentive policies. In short, these countries have the opportunity to attract major investments, increase their competitiveness and consolidate themselves as major exporters, offering the market an advantageous and strategic natural gas option.

Guyana and Suriname: a new powerhouse in LNG? How South America can surprise the global market by 2030