US embassy cable - 04GUATEMALA2126

UNCLAS GUATEMALA 002126 
 
SIPDIS 
 
SENSITIVE 
 
FOR WHA/EPSC MARTINEZ 
 
E.O. 12958: N/A 
TAGS: ECON, ENRG, XK, GT 
SUBJECT: GUATEMALAN PETROLEUM IMPORTS FROM VENEZUELA -- ALL 
ON A COMMERCIAL BASIS 
 
REF: SECSTATE 176535 
 
(SBU)  The GoG does not purchase petroleum from Venezuela 
under the San Jose or Caracas Accords, and the PetroCaribe 
initiative is not even on the GoG,s radar.  The GoG is not a 
direct purchaser of petroleum for its power sector since the 
handful of electricity generators it owns run on renewables. 
Petroleum product distribution and thermal power generation 
are in the hands of the private sector, and they have not 
found any mechanisms for purchasing petroleum under the San 
Jose or Caracas Accords that offer advantages to purchasing 
from the commerical market.  Imports are of refined products, 
but we note that Duke Energy, an American electrical energy 
producer, is working on switching its San Jose plant from 
coal to Venezuelan orimulsion.  Guatemala imported an average 
of 6,045 bpd of refined petroleum products from Venezuela 
during the first half of 2004, according to the Hydrocarbons 
Directorate of the Ministry of Energy and Mines.  This was a 
little less then ten percent of total imports of 63,350 bpd. 
Venezuelan imports satisfy 12 pct of the demand for premium 
gasoline, 5 pct of demand for regular gasoline, 19 pct of 
demand for diesel, and 1 pct of demand for bunker C or fuel 
oil.  COMMENT: In Post,s judgement, petroleum does not give 
the Government of Venezuela significant leverage over the 
GoG. END COMMENT. 
HAMILTON