President Irfaan Ali says establishing an oil refinery in Guyana is central to the government’s plans for strengthening the country’s energy security and ensuring that its growing oil wealth contributes more directly to national development.
Ali explained that the proposed national oil company would not be designed primarily to produce or invest in crude oil. Instead, he said the concept would be built around a domestic refinery and a broader fuel-supply system capable of reducing Guyana’s exposure to international price fluctuations.
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Guyana has emerged as one of the world’s fastest-growing oil producers, but despite producing large quantities of crude offshore, the country continues to import the refined gasoline and diesel used domestically. Ali argued that this leaves consumers and businesses vulnerable whenever global fuel prices or supply chains are disrupted.
“We cannot have crude oil and don’t have security of supply,” the President said, emphasizing that a local refinery could provide Guyana with greater control over its fuel supply and a buffer against international shocks.
The refinery would form part of a wider strategy that includes significantly expanding the country’s fuel-storage capacity. The government is considering reserves capable of covering between 30 and 120 days of domestic demand, depending on the level ultimately deemed appropriate for national security and economic growth.
Ali also sees potential for Guyana to move beyond meeting its own fuel needs and eventually become a supplier of refined petroleum products to other Caribbean countries. Such a development could strengthen Guyana’s position within CARICOM’s energy market while creating another avenue for the country to benefit from its expanding petroleum industry.
The President’s renewed emphasis on refining comes as Guyana’s oil production continues to expand. Government estimates indicate that a fifth floating production, storage and offloading vessel is expected to begin production later this year, potentially pushing national crude output beyond one million barrels per day.
Ali has previously described a domestic refinery as a national-security priority, particularly in light of global conflicts and disruptions that can affect fuel prices and international supplies. His administration has also been examining how the next phase of Guyana’s oil and gas development should be structured as production increases.
However, the refinery and national oil company remain part of the government’s broader policy planning rather than an announced completed project. Ali’s comments indicate that the administration is exploring investment and operational models that could allow Guyana to capture more value from its petroleum resources while reducing its dependence on imported refined fuel.
For the government, the objective is therefore not simply to produce more oil, but to build infrastructure around the sector that can lower domestic energy vulnerabilities, support economic expansion and potentially position Guyana as an important energy supplier to the wider Caribbean.
