ExxonMobil Eyes Major Gas Expansion in Guyana's Stabroek Block

Exxon Mobil Corporation XOM is set to enhance natural gas production and supply in Guyana with a large-scale project following the government's call for increased gas resources to support onshore power and petrochemical initiatives, per a Reuters report. Alistair Routledge, head of ExxonMobil's operations in Guyana, unveiled the "Wales Gas Vision" at an energy conference in Georgetown, emphasizing its potential to supply gas for various power generation and petrochemical projects.The initiative followed the completion of a $1 billion pipeline last year that will transport gas produced from ExxonMobil's extensive Stabroek Block. The Guyanese government will utilize a portion of this gas for power generation and natural gas liquids production. Furthermore, plans include the establishment of an offshore gas processing and liquefied natural gas (LNG) facility, set to be developed by U.S.-based Fulcrum LNG.Energy minister Vickram Bharrat mentioned that ExxonMobil is likely to oversee the construction of additional pipelines to transport the government’s entitled gas, known as profit gas, to Fulcrum LNG's facility. This facility aims to facilitate LNG exports and supply gas to the Berbice area of Guyana, which is expected to enhance fertilizer and alumina production.While the total investment figures for these projects remain undisclosed, the government believes that ample gas is available for commercial endeavors, pending a complete assessment of gas resources at ExxonMobil's block. According to the minister, "There will be a shift towards gas utilization and monetization," as the government prepares to launch its ambitious gas strategy later this year.The XOM-led consortium, which includes U.S. firm Hess and China's CNOOC, is gearing up to significantly increase gas output in the upcoming years. It is focusing on projects that involve non-associated gas, such as the Longtail project. A final investment decision for Longtail, projected to deliver up to 1.2 billion cubic feet per day (bcfd) of gas, is anticipated next year.ExxonMobil has expressed its readiness to supply gas to shore, according to Alistair Routledge at Guyana's Energy Conference. Bharrat stated earlier on Wednesday that Guyana is working to incorporate natural gas into its oil-dominated energy mix, aiming to enhance power generation and create new revenue streams through petrochemical and LNG exports.Additionally, ExxonMobil confirmed that the country's fourth floating oil production facility, constructed by SBM Offshore and recently departing from Singapore, is scheduled to begin operations in the third quarter.As Guyana shifts toward a more diversified energy portfolio, the collaboration between ExxonMobil and the government signals a significant step in enhancing the country's natural gas capabilities, positioning it for a future beyond its oil-dominated landscape.XOM’s Zacks Rank & Key PicksCurrently, XOM carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, NextDecade Corporation NEXT and Range Resources Corporation RRC. While SM Energy and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, NextDecade’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, the company is well-positioned to tap into the increasing export demand from the United States.Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on natural gas' role as a cleaner-burning fuel amid a low-carbon shift. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Range Resources Corporation (RRC): Free Stock Analysis Report SM Energy Company (SM): Free Stock Analysis Report NextDecade Corporation (NEXT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks