GUATEMALAN PETROLEUM IMPORTS FROM VENEZUELA -- ALL

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