Saturday, May 25, 2024

Logo Central America Link

Region: exploiting natural gas

Monday, March 18, 2013

Medium-term, there will likely be opportunities for exploration and exploitation of natural gas deposits in Costa Rica, along with the possibility of importation and distribution, throughout the region.

The government of Laura Chinchilla has imposed a moratorium on oil-gas exploration.

However, the Costa Rican position could change next year, when a new administration takes office, especially since revenue from hydrocarbon exploitation would help reduce the country’s chronic deficit problem – close to 5% of GDP in projected for 2013, about the same as for the past three years.

Black Hills Corporation owns the right to explore potential deposits in several sections of the country.

Other blocks, however, have yet to be allocated.

Hydrocarbon exploration is already under way in Nicaragua and Panama, based on studies, which show that the region may have economically viable deposits of both petroleum and natural gas, mainly in the Caribbean basin.

If this turns out not to be the case, importation and distribution of gas would be an option.

Iso-containers are an important mechanism for delivery of gas to industrial users and transportation companies, On a small scale, as would be the case in individual countries, this is an expensive approach.

But for companies, which operate on a regional basis, this could be an attractive market.