In wake of Trinidad and Tobago’s proposal to process a portion of Guyana’s gas resources, local Financial Analyst, Joel Bhagwandin has emphasized the need for Guyana to carefully study the implications of such a recommendation. In fact, Bhagwandin said it is crucial that Guyana prioritizes safeguarding its own interests in the burgeoning oil and gas sector.
Bhagwandin’s remarks come at a pivotal moment in Guyana’s energy trajectory, with Vice President Dr. Bharrat Jagdeo recently dismissing the notion of sending oil to Trinidad and Tobago for processing due to the latter’s lack of a functioning refinery.
Guyana also finds itself at a critical juncture for in just eight years since the discovery of crude oil offshore, there has been a commendable level of commercial production. This is according to Bhagwandin who in a recent letter to the editor noted that the government has swiftly implemented reforms, including enacting Local Content Legislation, modernizing Petroleum Activities Legislation, and revising Production Sharing Agreements (PSAs) to ensure a fairer distribution of profits to the country.
Despite these advancements, Trinidad and Tobago’s Energy Minister, Stuart Young has recently advocated for Guyana to send its gas resources for processing, citing immediate returns and minimal to no investments for infrastructure requirements.
Bhagwandin however contends that Guyana must prioritize its long-term interests over short-term gains. He argues that developing a downstream industry domestically would not only maximize benefits for Guyana and its people but also create opportunities for the local private sector and generate employment. Moreover, he highlighted the logistical and financial challenges associated with transporting gas to Trinidad, whether through pipeline infrastructure or floating LNG facilities.
Bhagwandin’s call to prioritize domestic interests also aligns with the Vice President Jagdeo’s vision of fostering a sustainable and competitive energy landscape in Guyana, one that benefits both present and future generations. As the nation navigates its role in the regional energy arena, both have contended that the focus should remain on charting a path that ensures prosperity and self-reliance for Guyana and its people.