A study to draw up a strategy to introduce natural gas to Central America has identified a project that would cost an estimated US$1.55bn, an official from the project's workgroup told BNamericas.
Mexico's energy ministry (Sener) is the workgroup's overall coordinator and IDB the technical secretary. Other members include government officials from Mexico, Central America and Colombia.
"Of the different alternatives analyzed by the consulting group, one stands out whose technical and economic feasibility seems to satisfy the different countries of the region," according to the official.
The project entails supplying gas via storage and regasification terminals and pipelines. The Central American Electrification Council (CEAC) has recommended the region look at gas-fired power generation to help reduce countries' oil bills.
One terminal would be built near La Unión port in El Salvador and supply gas through a 910km, 24 and 20-inch pipeline to San Salvador, Guatemala City, Tegucigalpa, San Pedro Sula and Managua, the official said.
Limón port in Costa Rica would be home to the other terminal, which would supply gas through a 698km, 20 and 18-inch pipeline to capital San José and Panamá City.
A workgroup meeting is pending where each country will define its position on the study's results and decide the project's next steps, the official added.
If the project advances, an international framework treaty would have to be signed, a developer selected and a decision made whether the project would be carried out under a public-private partnership, among other tasks, according to the official.
The initiative falls under the Mesoamerican energy integration program (PIEM).
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