Guatemala has launched a tender to contract 1,500 megawatts (MW) of new electricity generation capacity to meet growing demand, with around 700 MW to be awarded to projects based on liquefied natural gas (LNG).
"Guatemala expects to contract at least 700 MW of firm power, in one or two facilities located in the coasts of the Atlantic Ocean or in the Pacific, which will receive LNG ships. This will satisfy the dynamic electricity demand of our country," said Victor Hugo Ventura, Guatemala's Minister of Energy and Mines.
Speaking to Reuters during an interview on the sidelines of an industry conference in London, the minister said natural gas would be one of the drivers of economies of Central American countries.
"We are sure that we can get very bigger efficiency in the process with natural gas. We consider the natural gas as a very important part of the transition to the low [local] emissions economy."
The tender is closing in November and is open for companies worldwide.
Guatemala has implemented an energy transition strategy that has allowed it to produce between 55 per cent and 70 per cent of its energy from renewable sources.
There is a significant impact in the case of dry years with insufficient rainfall. For this reason, this tender seeks the contracting of firm energy, to produce 365 days a year and with "lower [local] emissions", and, "this can only be achieved with fuels such as natural gas," the minister said.
(Reporting by Marwa Rashad; Editing by Leslie Adler)