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  HOME | Central America

Firms from Russia, China, Spain, U.S. Interested in Guatemala Pipeline

GUATEMALA CITY – Companies from Russia, China, Spain and the United States are interested in participating in the construction of a pipeline linking Mexico and Guatemala, the Central American nation’s economy minister said Thursday.

Sergio de la Torre said he was set to meet later Thursday with representatives of Russian state-controlled energy giant Gazprom, the world’s largest natural gas producer.

Investors took part in the Latin America World Business Forum Wednesday in Guatemala City and during their stay in the country plan to present their plans for financing construction of the Guatemalan portion of the conduit.

De la Torre also said companies from Guatemala, Mexico, China, Spain and the United States are interested in investing in the project, although he did say which ones.

The 600-kilometer (370-mile) bi-national pipeline will cost around $800 million.

Guatemalan President Otto Perez Molina and Mexican counterpart Enrique Peña Nieto signed an agreement in April to build the pipeline through a public-private partnership.

The gas pipeline will link the Mexican port city of Salina Cruz with the southern Guatemalan coastal province of Escuintla and be overseen by Mexico’s Energy Secretariat and Guatemala’s Energy and Mines Ministry.

It will stretch for 180 kilometers (112 miles) on Guatemalan soil and for 420 kilometers (260 miles) on Mexico’s side of the border, although no date has been set for construction to begin.

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