Costa Rica To Start Refinery Construction In January

With the financial support of the government of China, Costa Rica is expected to start in January 2013 the construction of a new oil refinery, that will go into operation by mid 2015.



The new plant will replace the old Refinadora Costarricense de Petróleo (RECOPE) facilities in Limón, at a cost of US$1.4 billion dollars, according to a statement by RECOPE general manager, Jorge Rojas.

The project is part of a "fluid" cooperation between San José and Beijing, following the formalization of diplomatic relations in 2007, which also included China's donation of the national stadium and China's buying of Costa Rica bonds for US$300 million dollars and other initiatives.

Rojas said the new refinery will have a capacity of 65.000 barrels daily, covering the current domestic demand and up to 15 years.

The construction of the refinery will be by the consortium named SORESCO, comprised of RECOPE and the China National Petroleum Corporation (CNPC), which will provide US$491 million dollars for the project.

The rest of the funding, US$900 million dollars, will coming from a loan by the Chinese Development Bank (CDB).

According to Rojas, the new refinery will give Costa Rica independence from international distributors of refined oil products.

Today, RECOPE - the national refinery - imports all fuels for distribution in the country. Local retailers (gasoline stations) buy from RECOPE and sell to consumers at prices established by the government regulating authority, the ARESEP.

The construction of the new refinery is expected to create up to 1.000 temporary jobs and 300 permanent jobs once the plant goes into operation, in the province of Limón, one of the most economically depressed regions in the country.