Guyana enters new phase of natural resources development as focus shifts to gas monetisation

Guyana’s natural resources sector is entering a new phase, with oil production surpassing 900,000 barrels per day and the government now placing greater emphasis on monetising the country’s natural gas resources while strengthening mining, forestry and environmental management.

Minister of Natural Resources Vickram Bharrat outlined the sector’s trajectory in an interview with the Department of Public Information (DPI) on Wednesday, highlighting the rapid expansion of oil production, the development of gas infrastructure and ongoing efforts to ensure greater value is derived from Guyana’s natural resources.

With the arrival of Guyana’s fifth FPSO, Errea Wittu, production is expected to cross the one million barrels per day threshold.

“The shift now is to ensure that we produce and monetize our gas resources,” Minister Bharrat said.

That shift is already taking shape through the Gas to Energy project in Wales, where a 12-inch pipeline is designed to transport up to 120 million cubic feet of gas per day.

The available gas is expected to support two power plants with a combined capacity of 600 megawatts, while also creating opportunities for other downstream industries.

The wider Wales development is expected to include natural gas liquids processing and a gas bottling facility, opening the way for locally produced propane.

“This project in Wales will not only benefit us in terms of electricity, but it will benefit us also when it comes to cooking gas or propane, cheaper cooking gas,” the minister explained.

The government is also advancing plans for a second gas pipeline to the Berbice development area, where there are opportunities for petrochemical industries, natural gas liquids facilities, data centres and other downstream investments.

Minister Bharrat said this represents a deliberate move away from simply producing raw resources towards creating greater economic value within Guyana.

The approach is also being applied to the forestry sector. The government is encouraging a transition from export of primary products to furniture, construction materials and other value-added goods.

Guyana’s forest cover remains a significant national asset, with approximately 86 per cent of the country covered by forest and one of the world’s lowest deforestation rates.

“We must move towards value added, which helps to create more business opportunities and direct and indirect employment as well,” Minister Bharrat said.

The same emphasis on regulation and value creation is evident in the mining sector, where the ministry has intensified efforts to regularise operations, strengthen gold traceability and curb illegal mining and smuggling.

The minister disclosed that more than 100 non-nationals have been blacklisted over suspected mining violations, while gold declarations have increased in 2026 despite tighter enforcement measures.

At the same time, Guyana is undertaking a major mineral inventory across designated mining districts, using two specialised aircraft to collect geological data that could help identify deposits of copper, lithium, rare earth elements and other critical minerals.

The information will be incorporated into a national data repository and made available to Guyanese small and medium-scale miners, while also providing a basis for future investment in the sector.

Minister Bharrat said development across the natural resources sector must proceed alongside environmental stewardship, pointing to reclamation and reforestation initiatives in Regions One, Eight and Ten, including a bamboo pilot project targeting former mined-out areas.

“We need to continue exploring and producing natural resources, but in a sustainable and responsible manner,” he said.

The government has also allocated $425 million in Budget 2026 for reclamation and reforestation projects, while $607 million has been earmarked to expand protected and conservation areas.

As the sector expands, he said a central priority will be ensuring Guyanese are equipped to occupy the technical and leadership positions emerging from this transformation.

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