The Mexican government is considering constructing a pipeline and eventually a refinery to supply the region.

Miguel Hakim, Mexican Secretary for Latin America and the Caribbean, said his country is considering building a refinery and natural gas pipeline which would cross the isthmus and would be an alternative option for generating power at low cost. Petroleos Mexicanos (Pemex), has $2 billion to invest.

During the World Economic Forum to be held in Switzerland next week, Guatemalan President Otto Perez, “… will sign an agreement with Pemex for the pipeline construction to facilitate the production of energy at a cheaper price.”

The president said: “The costs of energy production would be three to four times cheaper. This is a benefit not only for the country but for all of Central America.”

The Economic Commission for Latin America and the Caribbean (ECLAC), conducted a feasibility study in 1998 for a regional gas pipeline between Mexico and Central America, which highlights that the initiative “would connect Central America with one of the most important natural gas markets worldwide. The gas industry in North America includes several areas that have high reserves of this fuel, major production levels and highly developed ( … ) infrastructure, there are some areas which are very close to Central America, in the states of Tabasco and Campeche in Mexico a short distance from the border with Guatemala.”

Source: Diario de Centro América