(Energy Analytics Institute, 31.Jul.2020) — Ecuador’s hydrocarbon ministry head René Ortiz and other authorities from Ecuador’s energy sector held a working meeting 28 July 2020 with the US assistant secretary of state for energy resources, Francis R. Fannon and ambassador Michael Fitzpatrick, during which they analyzed investment prospects and mechanisms for strengthening the Ecuadorian energy sector.
Ortiz and other Ecuadorian officials presented strategies and advances to attract investments to the South American country, Ecuador’s Ministry of Energy and Non-Renewable Natural Resources (MERNNR by its Spanish acronym) announced 31 July 2020 in an official statement.
Ecuador’ s national government has made the decision to tender the joint management of the Esmeraldas refinery to the private sector, which could invest an estimated $2.2 billion in the implementation of improvements in infrastructure at the current industrial plant. The investment also contemplates construction of a high conversion train with capacity of 40,000 barrels per day, MERNNR head Ortiz said.
Work related to the refinery would take place after an open bidding process and the contract for the work is likely to span a period of 25 years.
Expected economic benefits to the Ecuadorian state will be around $1.6 billion, Ortiz said.
US officials also announced investment expectations in the electricity sector with around $15,982 million slated through 2027 for the construction of hydroelectric projects such as Cardenillo and Santiago.
The bilateral meeting concluded with the parties’ commitment to strengthen the “America Grows” agreement signed by the US and Ecuadorian governments last February, and which seeks to reactivate economic growth — including job creation — through US private sector investment in infrastructure projects from ports, airports, highways, and energy infrastructure.
By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.