Pemex, Guatemala to build $1.2 billion gas pipeline

GUATEMALA CITY -- Pemex and Guatemala are set to build a $1.2 billion, 600 km long gas pipeline linking the two countries, a Guatemalan presidential spokesman said.

Presidents from both countries will sign a bilateral accord at the World Economic Forum in Davos next week agreeing to the construction of the pipeline between Salina Cruz, Mexico and the southern department of Escuintla, Guatemala, said Francisco Cuevas, a spokesman for the Guatemalan presidency.

Pemex will build 420 km and Guatemala will build the remaining 180 km, Cuevas said, adding that Guatemala plans to open the project to bidding this year and that the pipeline should be operational by 2016.