Government reviewing proposals for national fuel storage network
–Main fuel farm, facilities at Lethem, other strategic locations under consideration
The government is reviewing proposals for a national fuel storage network to hold larger reserves for local demand and supply the northern Brazil market.
President Dr Mohamed Irfaan Ali made the disclosure at a press conference held earlier this month. He was answering a question about his recent state visit to Qatar.
“Every single major player in the energy sector has asked that very question, because Guyana is positioning itself naturally as an energy hub in the region,” the president said.
The network would follow a hub-and-spoke model: a main fuel farm, supported by smaller facilities at key locations, including Lethem, “and other places that are critical,” President Ali said.
The proposals come as imported fuel costs rise. The president said the cost of imported refined products such as gasoline has increased by 51 per cent since January. The cost of diesel used for power generation has risen by 86.8 per cent.
“Not a cent of this increase has been passed on to the consumer,” he said.
The government has increased its subsidies to the Guyana Power and Light (GPL) to cushion the increase. The Minister of Finance is currently sourcing “tens of billions of dollars” to cover GPL’s higher fuel bill.
President Ali also pointed to growing demand for energy outside the national grid. He noted that two gold mines could each require about 75 megawatts of power.
On refining, President Ali said a visiting investment delegation from the United Arab Emirates presented a refinery proposal about three weeks ago.
The government is also considering one or two other proposals. He said Bechtel is conducting studies on the deep-water port, a critical part of that wider investment.
At a press conference in August, the president said Guyana’s fuel storage capacity falls short of “the development aspirations of our country.”
The options being considered range from 30 to 120 days’ supply.
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