Latin American leaders agree on energy plan

Seeking relief from soaring energy prices and dependence on foreign oil, leaders of 10 Latin American nations agreed June 3 to push forward a sweeping energy plan that includes the construction of a liquefied natural gas plant, a hydroelectric dam and a pipeline stretching from Mexico to Panama.

But the most important details of the energy project were postponed, such as where to build a proposed $6.5 billion refinery that would provide up to 360,000 barrels of oil a day. Guatemala and Panama were the leading contenders for the multinational refinery, billed as the largest project in Latin America since the Panama Canal.

“At this meeting there is not going to be a decision on choosing a location. That is a decision that will go after the investments are made,” Mexican President Vincente Fox told reporters June 3 before a presentation with Dominican President Leonel Fernandez. The refinery project is expected to be funded by private investors who have not been named. Those investors will choose the refinery’s location under an agreement signed by the leaders Saturday, officials said.

Fox said the refinery, to which Mexico would provide about two-thirds of the supply, will help Central American countries struggling under the soaring cost of oil.

“For the first time, they will have competitive energy prices like we have in Mexico,” Fox said. Mexican Energy Secretary Fernando Canales has said the refinery would provide oil at $8 less a barrel than open-market prices.

Presidents and foreign ministers from the 10 countries met for the summit’s second day at the Casa de Campo resort in La Romana, 70 miles east of the capital, Santo Domingo.

The summit included representatives from Mexico, Colombia, Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and the Dominican Republic.

—The Associated Press