SHI-OIL (Guyana) is preparing to launch a groundbreaking USD60 million fuel blending plant in Guyana to deliver a diverse array of petroleum products, including lubricants, to Guyana, the Caribbean Community, Suriname, and northern Brazil. This groundbreaking facility is set to take shape at Parika, along the east bank of the Essequibo River, across from Fort Zeelandia. SHI OIL is awaiting approvals from the Environmental Protection Agency and other government regulators and, if all goes well, will start operations in Q4 2025.
According to the company, the construction phase of the project is expected to last between six to eight months, providing job opportunities for at least 100 local workers. When operations start, SHI OIL expects to engage nearly a dozen Guyanese in strategic roles, paving the way for these pioneers to propel their country’s pool of oil and gas expertise into the exciting new field of fuel blending. 24
Plant Details The project summary reveals that SHI-OIL will build the state-of-the-art facility on approximately 27.075 acres. This ambitious project will feature modern storage tanks, a fully equipped loading bay, and dedicated housing and office spaces for staff and visitors. Additionally, a custom-built wharf will enhance the facility’s capabilities, making it a hub of activity and innovation.
The fuel blending plant will feature four impressive main tanks (storage capacity of 80, 000 barrels), complemented by 10 smaller tanks (storage capacity of 15, 000 barrels), all designed to safely and efficiently store fuel brought in primarily by fuel ships. SHI-OIL designed this setup to enhance operational capabilities and ensure a reliable and timely supply of resources.
“The fuel in these tanks will be mixed to produce different grades of fuel [such as gasoline, diesel, heavy fuel oil, and lubricants],” the company said. This meticulously designed system will enable SHI-OIL to produce and blend five million gallons PROJECT Plant operations are centered on storing fuel in separate tanks, followed by the controlled dispensing of these fuels into customer vessels or tankers. The operational team will utilize specific additives for fuel coloration and integrate a range of petroleum and energy products into the formulations to enhance performance and meet market specifications. T
he blended fuels produced will be distributed to both domestic and international markets. Chief Financial Officer of SHI-OIL, Wale Luke, indicated that the project’s investors are entirely Guyanese, supported by a consortium of local and international commercial banks, and some level of development financing.
He asserted that the investors are certain that the project is feasible, noting, “We have been in the business locally for 30 years and have a significant local customer base.” Luke emphasized that Guyana is in a prime position to capitalize on the growing demand for energy in the region. He noted that the project has successfully navigated the EPA public notice timeline without any objections, a significant milestone. “We are finalizing with Central Housing and Planning Authority,” he added, highlighting the positive momentum of the project.
Risks Minimized The project summary assured that the facility’s design poses negligible risks to the immediate environment and the Essequibo River. It described the project area as a sparsely populated flatland covered with shrubs and grass. Although a thorough study of the local plant and animal species has yet to be conducted, SHI-OIL has committed to adhering to strict protocols to minimize any potential negative environmental impacts. The project summary said SHI-OIL would hold contractors to the highest safety and environmental standards during construction to ensure debris or chemicals from cement do not contaminate waterways.
“Contracts will include the rules set out by SHI-OIL to safeguard the environment and will attract penalties…sufficient to repair any damage caused,” the document said. The Health, Safety, and Environment Officer will ensure strict compliance with all regulations and protocols. According to its website, SHI-OIL can deliver millions of liters of products daily, amounting to a standout performance in the petroleum distribution sector. With an infrastructure designed for efficiency, the company can distribute an impressive 40 million liters annually in Guyana, backed by state-of-the-art storage and distribution facilities.
