Exxon's Gas Reinjection Needs Force Guyana to Scale Back LNG Plans
XOM sits 58% above its 52-week low of $110.385.
Summary
ExxonMobil has told Guyana it needs about 2 bcfd of gas for reinjection into oilfields to meet crude output targets, leaving less gas for LNG exports. Guyana is now weighing whether to shrink its planned LNG project from 6 mtpa to up to 3 mtpa or skip exports altogether and use gas domestically. This is a setback for Guyana's energy ambitions and could delay monetization of its gas reserves. The news adds uncertainty to Exxon's Stabroek development plans, though the company's oil production remains the priority. Chevron and CNOOC are partners in the consortium.
Updates
· Seeking Alpha — Guyana may start LNG project at up to 3M tons/year instead of 6M tons/year, and is poised to surpass 1M bbl/day crude exports in December with Uaru grade.
At the time of this announcement, XOM was trading at $174.26 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $716.5B. The 52-week trading range was $110.39 to $176.41. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.