Pemex and Guatemala to build 600 km pipeline
Mexico's oil giant Pemex and Guatemala are set to build a US$ 1.2 billion, 600 km long gas pipeline linking the two countries.
According to Francisco Cuevas, a spokesman for the Guatemalan presidency, presidents from both countries will sign a bilateral accord at the World Economic Forum in Davos later this month. They will agree to the construction of the pipeline between Salina Cruz, Mexico and the southern department of Escuintla, Guatemala.
Pemex will construct 420 km of the pipeline, and Guatemala will construct the remaining 180 km. Guatemala plans to open the project to bidding later this year. The pipeline is expected to be operational by 2016.
According to Cuevas, as Guatemala does not produce natural gas, the pipeline will give local manufacturers access to cheap Mexican gas, allowing them to become more competitive.
Edited from various sources by Hannah Priestley-Eaton
Read the article online at: https://www.worldpipelines.com/business-news/20012014/pemex_and_guatemala_to_build_600_km_pipeline/
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