Nicaragua Hires First Phase of Refinery Works

CAMC Engineering, from Mainland China, is the counterpart of a $233 million contract to build the basic storage infrastructure and the pipeline network.

Monday, April 30, 2012

The Chinese group CAMC Engineering Co., Ltd. (CAMCE) signed a memorandum of understanding for a joint venture with Alba de Nicaragua SA (Albanisa) – a Venezuelan oil importing company, to build the first phase of a refinery in Nicaragua, which will be called " El Supremo Sueño de Bolívar” (The Supreme Dream of Bolivar).

The announcement was made by Francisco Lopez, vice president of Albanisa and important aide to the Nicaraguan President Daniel Ortega. Lopez signed the agreement with the vice president of CAMCE, Shen Wei.

The investment for the construction of the first phase of the refinery will be worth $233 million. The total cost of the entire refinery is about $6 billion.

As reported by news agencies such as EFE and Reuters, "the Chinese company will build within 20 months and with a value of $183 million a terminal at the refinery, where storage tanks for gasoline, diesel, fuel oil or bunker fuel, gas and jet fuel will be installed. CAMCE also won the bidding for the 50 million dollar contract to build 3.8 kilometers of undersea pipeline that will serve to transport the fuel to storage tanks, said López."

According to the original plans, the refinery will have a capacity to refine150,000 barrels of oil a day, most of which must be exported to Central America.



More on this topic

Criticsm of Refinery Construction in Nicaragua

March 2013

Even though in five years the refinery El Supremo Sueño de Bolivar in Nicaragua has received $233 million, no progress has been made in its construction.

Data from the Central Bank of Nicaragua (BCN by its initials in Spanish), reveals that last year $141.2 million was injected into the refinery, however, progress of the investment so far is invisible.

Nicaragua: Law to Build Refinery

September 2012

The National Assembly has approved a $ 6.5 billion project that includes a refinery and an interoceanic pipeline.

Investors are assumed to be the government of Venezuela "and other partners" in a project that has no definite dates for implementation and which aims to supply 40% of the consumption of refined fuels from the Central region.

Nicaragua Re-Exports Oil to El Salvador

May 2012

The company Albanisa S.A. exported crude Venezuelan oil and derivative products to El Salvador worth a total of $204 million in 2011, at an average price of $102 a barrel.

The data has been provided from an investigation by the newspaper La Prensa of Nicaragua citing data from the Analysis Unit of the Directorate General of Hydrocarbons at the Ministry of Economy in El Salvador.

Start of Works Announced at Nicaraguan Refinery

October 2011

The president of the company Alba de Nicaragua S.A., has announced that by the end of the year contracts will be signed for the construction of the first phase of the project.

The project in Nicaragua, which has been delayed for years, will provide capacity to process about 150,000 barrels a day, said Rafael Ramírez, Minister of Energy and Petroleum of Venezuela during the Petrocaribe VII Ministerial Council held in Managua, Nicaragua.

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