Approved loan signed between Nicaragua and China for an energy project to store Liquefied Petroleum Gas in Nicaragua.
Legislative Assembly valid loan agreed between Nicaragua and China to build LPG storage areas.
The Parliament of Nicaragua approved the Credit Facility Agreement between the Latin American nation and a Chinese company, for an amount of approximately 26 million 867 thousand dollars, to strengthen energy stability.
“The National Assembly unanimously approved… the Decree of the Credit Facility Agreement, signed between the Republic of Nicaragua and China Camc Engineering Co. LTd. (CAMCE) of the People’s Republic of China, for an amount of 194 million 471 yuan (about 26 million 867 thousand dollars), whose objective is to strengthen the energy capabilities of our country, satisfy local demand, and maintain energy stability», The Legislature detailed on its website.
Furthermore, he added that «with this financing the Government of Nicaragua, through the Nicaraguan Gas Company, ENIGAS, will design, build and put into operation 3 storage areas for Liquefied Petroleum Gas, LPG that will allow a higher quality supply, price stability, and global coverage.”
Therefore, the Nicaraguan Gas Company (ENIGAS) will carry out this project in order to increase Nicaragua’s storage capacity and thus be able to face variations in international LPG prices.
According to the president of the Production, Economy and Budget Commission, deputy Wálmaro Gutiérrez, Nicaragua has the smallest liquefied petroleum gas (LPG) storage capacity in Central America, with only 3 public and 2 private spheres.
“With this project we are going to increase the number of spheres to be able to keep under protection a product of vital need for Nicaraguans,” said Gutierrez.
Likewise, the Nicaraguan parliamentarian highlighted the importance of developing storage capacity amid the fluctuation in prices of oil and its derivatives, in order to face any type of crisis that may arise.
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With the construction of these three new spheres, Nicaragua’s storage capacity is expected to increase significantly, going from 5 million gallons of LPG to more than 8 million gallons.
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This project is part of the Nicaraguan government’s efforts with the strategic cooperation of China, to strengthen the country’s energy infrastructure and guarantee a stable and safe supply of LPG for its citizens.
