Guyana revives national refinery talks as Pres. Ali warns of global energy shocks

President Dr Irfaan Ali is sparking renewed discussions on a national refinery, emphasising that the strategic development of regional resources is essential to safeguarding the Western Hemisphere’s economic stability and energy security.

The Head of State made the announcement during the 136th General Meeting of the Georgetown Chamber of Commerce and Industry (GCCI), held at the Guyana Marriott Hotel, Kingston, Georgetown, on Thursday.

His discussion was directly linked to the ongoing conflict in the Middle East, particularly developments surrounding the Strait of Hormuz.

Rising tensions in the Middle East have placed renewed global focus on the Strait of Hormuz amid an escalating conflict involving Iran, Israel, and the United States. The ongoing military exchanges, including airstrikes on Iranian energy infrastructure and retaliatory attacks, have heightened fears of disruptions to one of the world’s most critical oil transit routes. As a result, global markets remain on edge, with concerns mounting over potential spikes in fuel prices, increased shipping costs, and wider impacts on international trade if instability in the region persists.

President Ali noted that natural gas is a critical component for the petrochemical industry, which underpins the production of plastics, fertilisers, pharmaceuticals, synthetic textiles, and helium, an essential element for cooling super magnets used in semiconductors. This, he explained, illustrates the wide-reaching impact that disruptions in natural gas supply can have on the global industrial and technological system.

“This is a massive disruption, and that is why we support every effort to have the Strait of Hormuz open and functional and every effort in bringing the war to an end. We also support every effort to protect key energy infrastructure in the Gulf States. There is no other option – we are all going to suffer under these circumstances.”

“This, of course, brings us very importantly to our policy decisions moving forward. One of the strategies is to increase our storage capacity and take it to a level where we can better control price differentials and cushion extreme shocks on the market,” he said.

President Ali said that there must be a renewed focus on discussions surrounding a refinery and energy security.

“Now, I believe we should return to the conversation of a refinery and security. This challenge has opened up discussions globally and reinforced what the U.S. policy for the Western Hemisphere has been – that we must optimise our resources and the development of those resources for the protection and economic viability of the hemisphere.”

He further noted that these considerations are critical to the region’s energy viability.

“These are no longer far-fetched ideas; they are now realities that we must embrace. An important part of this reality is ensuring we have a secure, rule-based hemisphere in which our shared values of democracy and freedom are upheld. We cannot continue to look beyond our hemisphere for solutions when we have so many resources within the Western Hemisphere that must be developed if we are to secure a sustainable future for ourselves. It is in this context that we must view this conference.”

Ali also highlighted Guyana’s growing global recognition, noting that the country is attracting increasing international investment. He emphasised that as Guyana rises, it must do so inclusively, warning that growth that excludes others risks fracturing, while growth that includes endures.

The President further cautioned that rising global tensions could lead to higher costs across industries. He explained that even everyday commodities, such as plates and cups, could be affected by a potential 20 per cent increase in maritime transport costs, which might add up to US$200 per 20-foot container in some locations. He added that the government has already maximised available adjustment tools to mitigate such impacts.