Guyana pitched as part of solution for Caribbean’s high energy costs

By Kurt Campbell

Kurt@newsroom.gy

Guyana’s oil production and domestic energy model through the gas-to-energy project were thrust into the spotlight on Monday, as outgoing President of Afreximbank, Professor Benedict Oramah, urged Caribbean leaders to look within for solutions to issues like the region’s high cost of energy.

The call was made during a high-level presidential panel on the opening day of the African-Caribbean Trade and Investment Forum (ACTIF) 2025 in Grenada. The discussion, themed around the “new world order” and emerging opportunities for Africa and the Caribbean, quickly turned to energy security.

Prof. Oramah questioned whether Caribbean countries had seriously considered Guyana’s rapidly growing oil and gas industry as a regional asset, and noted the absence of Guyanese President Dr. Irfaan Ali from the dialogue. Dr. Ali is currently on the campaign trail at home ahead of Guyana’s general elections, scheduled for September 1, 2025.

“Today, you have Guyana as a major oil producer,” Prof. Oramah noted. “Has CARICOM ever sat and thought about aggregating demand for petroleum and talking to Guyana to refine and supply it collectively? If you do that, you’ll reduce your petroleum prices dramatically.”

He cautioned that Guyana’s oil is currently sold on the open market, but said a deliberate, organised CARICOM approach could create space for regional prioritisation and trade.

“Guyana is not going to do anything unless you come together with a serious proposal… they’ll treat you like any other buyer,” Oramah said.

Guyana has been positioning itself as an energy game-changer in the region, not just through its status as a major crude producer, but also via its Wales Gas-to-Energy Project.

The project, anchored by the construction of a gas pipeline from ExxonMobil’s offshore operations to an integrated Natural Gas Liquids (NGL) plant and power plant at Wales on the West Bank of the Demerara River, is expected to slash electricity costs for Guyanese by up to 50%. The government projects that electricity prices will fall from around US$0.30 per kWh to US$0.15 or less, opening up new avenues for industrial growth and investment.

The initiative is being touted as a replicable model across the Caribbean, many of whose economies are burdened with high electricity costs.

Almost immediately after Prof. Oramah’s remarks, Prime Minister of St. Kitts and Nevis, Dr. Terrance Drew, weighed in to endorse the proposal, saying the idea has been “on his mind for some time.”

“Here we are, having this resource in a CARICOM country, and yet we seem to be looking outside the region for solutions,” Dr. Drew said. “CARICOM should engage Guyana directly… how can we leverage this petroleum product to resolve the high cost of energy in the region?”

He stressed that the high cost of energy in his twin-island federation is unsustainable for small, open economies.

“If we don’t bring down the cost of energy in the Caribbean, we’ll keep dealing with these issues forever: uncompetitive industries, high cost of living, and stifled development,” Dr. Drew added. He committed to raising the issue at the CARICOM Bureau, alongside Prime Ministers Mia Mottley of Barbados and Andrew Holness of Jamaica.

Prime Minister Mia Mottley, meanwhile, gave historical context to the challenge, pointing out that multinational contracts — including those in Guyana — often overlook regional development needs. She encouraged CARICOM to aggregate renewable energy production and demand as a bloc.

“No one country in our region has the numbers to attract serious investment alone,” Mottley said. “But together, with geothermal in the Eastern Caribbean, hydro and solar in Guyana and Suriname, and wind in others, we have the potential to be a serious green energy player.”

She noted that Trinidad and Tobago is already one of the world’s largest exporters of ammonia and could be a key partner in green hydrogen production — if the region acts collectively.

Then Prime Minister Gaston Browne of Antigua and Barbuda emphasised the importance of ownership and equity in energy development. Browne criticised the extractive model that sees Caribbean resources exported and then reimported at higher costs.

“It’s a continuation of colonialism,” Browne said bluntly. “We need to control our resources and retain profits within our economies. That’s the only way we can break this cycle.”

He warned that reliance on foreign investment alone would keep the region locked into low-value economic activities and called for greater investment in shared infrastructure and industries.