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 Business News | November 2005 
Mexico Proposes Project with Central America
 Wire services
| | Mexico, through Pemex, would invest as much as US400 million in the refinery project, seek to raise a similar amount from private investors and have the project trade on international markets. |
Mexico is proposing its state-owned oil company and Central America governments join private investors to build US7.5 billion of energy projects to supply the region with gasoline, natural gas and electricity.
Mexico wants to begin the bidding process in the first half of next year on a US3.5 billion oil refinery to be built in Central America and use Mexican crude, said Foreign Relations Secretary Luis Ernesto Derbez in the transcript of a press conference in San José, Costa Rica. Mexico also wants to build an electricity plant powered by petroleum coke and a gasification plant together with Central American countries, Derbez said.
Clarifying Specifics
"We're talking about transcendental projects," Derbez said. "What's important is for the presidents to define specifically if yes, if they will join the working groups."
Mexico, the world's sixthlargest oil producer, imports gasoline and natural gas from the United States because the government has failed to invest enough in Petroleos Mexicanos to keep up production with demand. The country's constitution bars private companies from investing in oil refining or natural gas extraction.
Derbez said he presented the plan this week to all the foreign ministers in Central America, the Dominican Republic and Colombia. The refinery, which could cost between US2.5 billion and US3.5 billion, is the most advanced of the three projects, Derbez said.
Mexico, through Pemex, would invest as much as US400 million in the refinery project, seek to raise a similar amount from private investors and have the project trade on "international markets," Derbez said.
"We would seek a formula so that all the Central American countries can participate as shareholders," Derbez said. |
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