Guyana's Bold Move: Ambitious Yet Uncertain LNG Dreams with Fulcrum

Guyana's ambitious plan to develop its natural gas reserves is at a standstill after selecting the U.S. startup Fulcrum LNG for a $30 billion project. With concerns about Fulcrum's ability to deliver, the country's venture into LNG exports faces challenges despite its booming oil economy.

Guyana's ambitious plans to cultivate its natural gas wealth remain in limbo, following the selection of the nascent U.S. firm Fulcrum LNG for a $30 billion export project. The South American nation, witnessing a booming economy thanks to offshore oil, now faces challenges in executing its gas dreams.

Fulcrum LNG, founded by former Exxon executive Jesus Bronchalo, was chosen over 16 other companies. Despite Fulcrum's lack of a track record in large-scale infrastructure, government officials initially touted the award as a significant economic achievement of the year, with plans to expand their energy partners beyond Exxon Mobil.

Yet, doubts have arisen over Fulcrum's ability to finance such a massive project. Governmental language around the contract has shifted, indicating an exploratory phase, and collaborations with industry giants like Baker Hughes and McDermott remain unconfirmed. Nevertheless, Guyana aims to diversify its energy revenue, even proposing alternative development routes if Exxon withholds cooperation.

(With inputs from agencies.)