Nicaragua and China sign S26.9 million loan agreement for gas storage
Photo: Wikimedia Commons.
The National Assembly of Nicaragua has struck a deal with the People’s Republic of China for a loan of $26.9 million aimed at financing the construction of three spheres for gas storage in the Central American country.
With this financing, the Nicaraguan government, through the Nicaraguan Gas Company (Enigas), will be able to design, build, and put into operation these spheres for the storage of Liquefied Petroleum Gas (LPG), which will allow for a supply of higher quality gas, price stability, and global coverage, according to the government of Daniel Ortega.
The agreement was signed between Nicaragua’s Ministry of Finance and Public Credit, and China CAMC Engineering Co. Ltd.
Government deputy Wálmaro Gutiérrez, president of the Production, Economy, and Budget Committee, highlighted the importance of this project for Nicaragua, pointing out that the country currently has the lowest capacity for LPG storage in Central America, with only three public and two private spheres.
Gutiérrez emphasized the need to increase this capacity to ensure a stable supply and address possible crises resulting from fluctuations in international gas and oil prices.
As stipulated in the agreement, the construction of these spheres will increase Nicaragua’s storage capacity from five million to more than eight million gallons of LPG.
This project is part of the strategic cooperation between China and Nicaragua, which has experienced significant strengthening in recent years. From December 5th 2023, to April 10th 2024, China has approved a total of $602.8 million in loans for Nicaragua, reflecting a solid commitment to investment in the Central American country.
The diplomatic relations between China and Nicaragua date back to December 1985, during the first Sandinista government, until 1990 when ties were established with Taiwan.
However, in December 2021, both countries officially resumed diplomatic relations after Nicaragua severed ties with Taiwan. Since then, progress has been made towards a strategic partnership, as evidenced by the recent financing agreement to strengthen LPG storage capacity in Nicaragua.
The construction of the new LPG storage spheres will contribute not only to ensure a stable supply of this fuel but also to strengthen cooperation ties between Nicaragua and China in the economic and diplomatic spheres.
Main source:
Parlamento de Nicaragua autoriza millonario préstamo con China para almacenamiento de gas | Investig.com (2024, abril 10)
https://es.investing.com/news/stock-market-news/parlamento-de-nicaragua-autoriza-millonario-prestamo-con-china-para-almacenamiento-de-gas-2632809
Other related sources:
Aprueban acuerdo de crédito con China para mejorar capacidad de almacenamiento de GLP en Nicaragua |TN8 (2024, abril 10)
Parlamento de Nicaragua autoriza millonario préstamo con China | Forbes Centroamérica (2024, abril 10)