Suriname eyes potential LNG export markets

Suriname could become a major LNG exporter to Latin American and Caribbean markets as it forges ahead with plans to develop deepwater hydrocarbon plays, according to UK-based consultancy firm Xodus.

But the government must act now to fully capitalize on rising global LNG demand over the next decade, Xodus commercial analyst Dan Paterson said during the Suriname Energy, Oil & Gas virtual summit.

“It will be sometime before Suriname can develop its LNG export potential, whether that be onshore or floating, with both being potential options," he said. "Lead times for onshore LNG can take up to 10 years due to issues around permitting and securing a viable site. Floating LNG schedules can be accelerated ... but capacity expansion options can be limited.

"Further technical work is required to determine a preferred option as both exhibit technical challenges such as the long shallow shelf, the mangroves onshore and potential ocean conditions with regards to floating LNG.”

The comments coincide with rising interest in Suriname's E&P sector following major discoveries by Total, Apache and Petronas.

In a mid-range scenario, Xodus estimates Suriname's Albian-Cenomanian-Turonian source rock play potential at 29Tf3 of recoverable gas, around 9Tf3 of which is associated with oil.

The area is said to have more gas than neighboring Guyana, providing a wealth of possibilities to transform an economy that is currently heavily dependent on oil, gold and bauxite exports, according to Xodus. 

While LNG offers an attractive long-term option to monetize gas, Paterson said nearer term opportunities would likely revolve around re-injection to increase oil production and the prospect of sending gas to industrial users via pipeline.

"An ability to export to shore provides flexibility for operators if gas reinjections cannot accommodate all of the gas produced," Paterson said. "It can also supply gas to domestic uses, including residential and industrial demand, supporting potential sustainable wealth creation within Suriname.

"We believe it would be prudent to install a trunkline to shore of sufficient capacity to capture gas from multiple fields in order to benefit from economies of scale and reduce the number of landfall crossings required.”

He predicted that such a project would cost less than a dollar per thousand cubic feet of gas over its lifespan.