For the second time, Perenco Guatemala Limited was awarded a 25-year contract to operate the pipeline from Campo Xan in Petén to the Piedras Negras oil terminal in Izabal.
After multiple delays were reported in the tender, the Ministry of Energy and Mines of Guatemala was able to award the new contract, which was signed on June 18 by both parties and published on July 24 in the newspaper of Central America.
The execution of five energy and infrastructure projects in Southern Mexico and the Northern Triangle of Central America could boost the area's economic growth and slow migration.
The projects discussed now are not new, they have been part of the discussion of the region's businessmen and governments for years, but now they have come back into the discussion, as a possible response to the pressure exerted by the U.S.
Because the Guatemalan authorities were not able to form the Tender Board, a new date will be set for the receipt of tenders for the operation and administration of the Stationary Hydrocarbon Transport System.
Although the deadline for tendering for the pipeline had already been extended in November last year and March 14, 2019 was set as the deadline for submission of proposals, the authorities of the Executive failed to form the Board and now a new deadline will have to be announced.
The construction of an oil pipeline and a maritime terminal in the Pacific for the transfer and storage of fuels, are some of the projects planned to develop the state-owned Recope in the next eight years in Costa Rica.
The construction of a new plant for storage and sale of clean products in Liberia, and the polyduct connecting this plant with Barranca, is one of the large-scale projects that the Costa Rican Petroleum Refinery (Recope) plans to develop in the coming years.
March 14th, 2019 is the new date scheduled by the Guatemalan authorities to receive offers for the operation and administration of the Stationary System for the Transport of Hydrocarbons.
After last July were found disadvantages in the proposal presented by Perenco, the only bidder in the last contest and current administrator of the pipeline, it was decided to make a new process.
Due to discrepancies found in the proposal presented by Perenco, another tender will be held to grant the operation and administration of the Stationary Hydrocarbon Transport System in concession.
In its resolution, the Qualifying Board explained that some inadequate elements were identified in the Perenco proposal, which necessitate a new tender in the coming months. According to the document, Perenco Guatemala, the sole bidder in the process, did not set a deadline for the contract, even though the published tender conditions established a maximum term of 25 years, with the possibility of extension.
Perenco Guatemala, the current operator of the pipeline, was the only bidder in the tender to obtain the concession for the operation and administration of the Hydrocarbons Transportation Stationary System.
The contract to operate the system includes a 425 kilometer pipeline, five pumping stations and the Piedras Negras export terminal, in Puerto Santo Tomás de Castilla, and the model of the contract to operate and manage it will be for a maximum of 25 years, with an option to extend.
In Guatemala, companies interested in operating and managing the Hydrocarbons Stationary Transport System are invited to present their offers on June 15.
Representatives from the Ministry of Energy and Mines (Mem) stated that the Qualification Committee, which will be appointed by an agreement, will be in charge of receiving technical-economic offers from 9:00 a.m. to 11:00 p.m. at the institution's facilities.
The Ministry of Energy and Mines reports that the process to tender the operation of the pipeline has been approved by the Attorney General's Office.
Without giving further details on the terms of the contract for the operation of the pipeline, currently the responsibility of Perenco, the Minister of Energy and Mines, Luis Chang, stated that the bidding process received a favorable ruling and is progress is being made.
The Guatemalan government has finally approved the contracting model and promises to launch the bidding process within the next four months.
At the end of 2016 the Ministry of Energy and Mines announced that it was beginning to prepare, at that time, a plan to call a new tenderand grant a concession for the operation of the pipeline, currently in the hands of Perenco, to a new company. Due to delays in the process, in February last year the contract with Perenco was extended for 18 months, meaning that August would be the deadline for the new launch.
After an 11% reduction in the output between 2015 and 2016, last year production totaled 9,641 million barrels, 7% more than the figures in 2016.
Due to the age of the wells operated by the company Perenco, according to figures from the Ministry of Energy and Mines, the national production of crude oil between 2010 and 2017 "... shows a downward trend due to the natural decline of the producing areas".
The Ministry of Energy and Mines in Guatemala has announced that it is preparing the documents for a tender for the operation of a Stationary System of Transport for Hydrocarbons.
Luis Chang, head of the Ministry of Energy and Mines, explained to Diario de Centroamérica that the aim is to publish "... the tender as soon as possible and that the process has the corresponding transparency, because a draft contract has to be created, which entails a legal mechanism".
After the expiration of the concession currently held by Perenco, a tender is to be launched for the operation of a pipeline connecting the Xan field in Peten with the oil terminal in Piedras Negras.
Elperiodico.com.gt reports that "...Vice President Jafeth Cabrera, after a meeting in Puerto Barrrios, Izabal, said the contract with Perenco which expires next year will be extended by no longer than six months in order to realise the tender."
The company AES is studying the feasibility of expanding the Andrés terminal in the Dominican Republic in order to export liquefied natural gas and build a pipeline with capacity to generate 1,000 MW of energy.
For the expansion of the terminal at Andrés an $25 million investment is estimated, while for pipelineconstruction the company AES plans to invest $100 million. These projects are expected to be ready during the third quarter of 2016.
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