South America develops a new energy pole

Agencies

Suriname, Guyana and Brazil will join resources to develop the gas sector and the economy of South America, announced this week the president of the first of the three countries, Chandrikapersad Santokhi, during the opening of the International Energy Conference and Expo Guyana summit.

Guyana and Suriname, countries that have achieved a new role in the energy sector following their recent findings, have an obligation to comply with environmental standards. The plan involving the three countries will also benefit the Caribbean region.

”The question is how do we make that transition using our new resources to establish a more diversified economy for generations to come. Suriname and Guyana, with these new resources, can mitigate energy poverty that hinders the development of productive lives,” he said. Santokhi.

For his part, the Vice President of Guyana, Bharrat Jagdeo, left open the possibility of his nation designing an oil company, after the discovery of deposits on its coast in recent years. Guyana’s oil production since 2015 has come from blocks located off its coast.

Already last year, investment in hydrocarbons had taken a lot of strength in the northernmost region of the continent. By then, the creation of a regional gas transportation corridor was expected to link the infrastructure energy of those territories. The project had been in talks for several years, as the IDB conducted studies in 2016 and 2017 on what he calls the Arco Norte Electrical Interconnection.

Gas in the Altiplano

In the central region of the Andes mountain range, the engines of development are also breathing new air. In Bolivia, the discovery of new reserves in a mega natural gas field was recently announced, for an estimated 300 to 350 billion cubic feet, which will generate additional income for the treasury of more than US$260 million per year when they are exploited.

The challenges are enormous. Precisely, this week S&P Global Ratings raised its concerns about the “reduced export capacity” of the gas sector in Bolivia, still in zone ‘B+/B’.