Guatemala - Mexico Pipeline

Although it is not yet clear how it will be financed, representatives from both governments have started to work on the technical and legal details of the project.

Tuesday, November 4, 2014 reports that "... Petroleos Mexicanos (Pemex) has put forward a scenario in which includes gas produced by Mexico and the gas imported from the US. The cost is estimated at around US $737 million and the execution would be carried out between 2016 and 2017. The rates, according to preliminary figures, would be around US $8.10 / MMBtu (one million BTU) between the cost of gas and its transfer to Guatemala. "
'... In order to cut costs, the solution could be to fix a minimum demand level in each section so that each country added enters with the same rules, paying a toll. Julio Héctor Estrada, director of the National Agency of Partnerships for Economic Infrastructure Development (ANADIE) stated that "the best that could happen from Guatemala's point of view is a pipeline which goes to Panama, to cut costs.If it only goes to Guatemala payment has to be made for the pipeline and consumption in the country. ""

More on this topic

Honduras to Join Mexico-Guatemala Pipeline

March 2015

President Hernández announced that the country will join an ambitious project which for now has not transcended the good but vague intentions of the Mexican government.

From a statement issued by the presidency of Guatemala:

The president of Honduras, Juan Orlando Hernandez, announced in Guatemala City that his country will join the pipeline project, whose construction is the result of a bilateral agreement between Guatemala and Mexico.

Gas Pipeline from Mexico Just Starting Initial Stages

October 2014

At the First Meeting of the Working Group on Gas Interconnection between Mexico and Guatemala it was agreed to boost the studies that will support an eventual pipeline in the Southeast region of Mexico and its extension to Central America.

Although as early as May of this year the government of Guatemala announced the signing of an agreement containing the project details, it is only now that Mexico has officially announced agreements to provide "specific working groups for further analysis on the issues of quantification of current and future demand in Guatemala and in the regional market as well as on the regulatory, financial and commercial, budgetary, and natural gasnaspects."

Central America as a Unified Market for Natural Gas

May 2013

The region is aiming to group together demand for natural gas in order to make the market more attractive to major companies.

According to René Castro, Minister of Environment and Energy (Minae), the visit of U.S. President Barack Obama, could open the door to greater cooperation from the Government in this area.

Use of Natural Gas in Guatemala

March 2012

The country lacks the necessary infrastructure for use on a large scale, but it could soon be installed according to bids submitted in the last energy tender.

Guatemala does not use natural gas, the cleanest source of power generation based on fossil fuels, said Sampo Suvisaario, general manager of Power Plants in Central America and the Caribbean belonging to the Finnish firm Wartsila, reports

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