Fulcrum LNG Selected to Develop Guyana’s Natural Gas Resources

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A newly established company, Fulcrum LNG, led by former Exxon Mobil executive Jesus Bronchalo, has been chosen to support the Guyana government and Exxon Mobil in creating a new independent natural gas development project. Guyana’s Ministry of Natural Resources announced that Fulcrum LNG presented “the most comprehensive and technically sound proposal” among 17 bidders. The preliminary discussions for the project have commenced, involving both the government and Exxon.

Guyana aims to monetize its extensive untapped natural gas reserves, estimated at 16 trillion cubic feet off its Caribbean coast, and to develop a secondary leg to its burgeoning energy sector. This initiative seeks to build on the country’s existing oil industry.

Fulcrum LNG and its Leadership

Fulcrum LNG was founded by Jesus Bronchalo, who spent 20 years at Exxon, most recently as a vice president based in Guyana before leaving the company in the first half of 2023. Fulcrum LNG was established in Nevada in July 2023, with Bronchalo serving as CEO, secretary, treasurer, and director.

Despite Bronchalo’s previous relationship with Exxon, the Guyana government did not see this as a conflict of interest, citing his complete severance from Exxon. Exxon has not yet decided on its participation in the project but has stated its commitment to helping Guyana develop its natural gas resources. The government of Guyana has expressed its intention to proceed with the project regardless of Exxon’s involvement.

Government and Industry Perspectives

Guyanese President Irfaan Ali indicated that an agreement involving the government and possibly Exxon is anticipated next year. Government officials emphasized the national priority of developing natural gas resources to boost exports and power domestic industry or potentially establish a liquefied natural gas (LNG) plant.

During his tenure at Exxon from 2020 to 2023, Bronchalo managed daily relations with the Guyanese government and led the bidding process for a gas-to-energy project aimed at generating electricity for local industry and residents. He also played a pivotal role in negotiating a take-or-pay agreement under which Guyana will pay Exxon $55 million annually for gas supply. Additionally, Bronchalo was involved in securing a 20-year lease agreement with the VESHI group to build a shorebase supporting Exxon’s offshore activities.

Fulcrum LNG’s Competitors and Future Steps

Among the 17 groups that submitted proposals, Chinese oil giant CNOOC, part of a joint venture responsible for all of Guyana’s oil production, ranked second. The selection of Fulcrum LNG underscores the government’s commitment to developing its natural gas sector and advancing its energy infrastructure.

As the project progresses, the Guyana government continues to prioritize the development of its natural gas resources, potentially transforming its energy landscape and economic prospects.