Brazil to forge energy corridor with northern neighbors

Brazil, Guyana and Suriname plan to forge a regional energy corridor anchored on a natural gas pipeline network.

A formal accord on the Arco Norte project will be signed tomorrow in Suriname's capital Paramaribo by presidents Jair Bolsonaro of Brazil, Irfaan Ali of Guyana and Chandrikapersad Santokhi of Suriname, Guyanese officials tell Argus.

The gas pipeline that will be central to the Arco Norte project would foment several industrial and petrochemical projects, such as a gas-fired aluminium smelter to process Guyana's bauxite ore. The gas could come from offshore Guyana and Suriname that are emerging onto the hydrocarbons map, as well as Brazil which has an abundance of gas in giant pre-salt deposits offshore.

Also on the agenda is a highway network connected to a planned deepwater port in Guyana, giving parts of northern Brazil access to the Atlantic.

"Guyana intends to bridge the gap between South America and the Caribbean and function as a new energy pole," Ali said in December.

"The joint operation on gas exploitation will generate cheap energy and will eventually be exporting gas to Brazil," Santokhi said.

The leaders will be discussing tomorrow "the formation of the energy corridor, as well as mutual opportunities in the oil and gas sectors of all three countries," Ali's office said.

The countries also plan to interchange electricity and "leverage our energy resources for energy security, and to potentiate growth and development opportunities in the northern flank of South America."

Guyana and Suriname want to have "a very strong strategic partnership with Brazil."

Arco Norte will eventually involve French Guiana, making France a party to the project, Guyanese officials said. French Guiana is an overseas department of France.

Guyana and Suriname are part of the Guianas shield that runs from eastern Venezuela into French Guiana, and which the US Geological Survey estimates could contain 21.2 Tcf of gas.

Guyana is developing a gas-to-shore project to use associated gas from its deepwater Stabroek block where ExxonMobil started crude production in 2019.

International oil companies exploring offshore Suriname have made five oil discoveries since January 2020, and production is expected to start by 2025.

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