THE REVIVAL of a project to run a pipeline from Mexico to Panama will be presented to Barack Obama this weekend.
The project was conceived in 1996 by the Regional Energy Forum of Central America .
The aim of the initiative is to lower energy costs and make the region more competitive .
Joseph Adam Aguerri, president of the Superior Council of Private Enterprise of Nicaragua(Cosep), said entrepreneurs will propose the initiative at the meeting of the Central American Integration System which will involve Obama. "The goal of this project will be to reduce the cost of power generation in Central America and make our production more feasible," said Aguerri.
Cosep estimates reveal that currently in Central America the generation of every kilowatt per hour costs between 17 and 18 cents but if the project goes ahead the cost would drop to 7 or 8 cents reports CentralAmericaData.
In 1998 the Economic Commission for Latin America and the Caribbean (ECLAC), conducted a feasibility study for a regional gas pipelinebetween Mexico and Central America, which found that: "This initiative would connect Central America with one of the largest natural gas markets worldwide. The gas industry in North America is comprised of several areas with high reserves of this fuel, a major production and a highly developed infrastructure in Canada and the United States, and a booming one in Mexico. There are producing zones very close to Central America, in the states of Tabasco and Campeche in Mexico, a short distance from the border with Guatemala. "