WGC: US Agencies in $1bn “Partnership to Power the Americas”

WASHINGTON, DC - The US Department of Energy (DoE) and the Overseas Private Investment Corporation (Opic) announced June 28 a joint commitment to support American energy companies investing in Latin America.

Under their Partnership to Power the Americas commitment, the DoE and Opic intend to help develop energy resources - including Mexico’s vast unconventional natural gas resources - and drive regional energy and economic security, while promoting US expertise, equipment and technology.

The new commitment was announced here by US energy secretary Rick Perry and Opic CEO Ray Washburne at the triennial World Gas Conference.

“To kick off this initiative, Opic is announcing today a $1bn commitment to Mexico over the next three years to catalyse energy investments south of our border and throughout Latin America,” Washburne told reporters. “Ideally, Secretary Perry can take US energy up to our border, and Opic can take it beyond.” “Given our complementary roles, it only makes sense that we collaborate more closely.”

The initial focus will be on helping Mexico develop its natural gas pipeline infrastructure, Perry said, which has lagged in recent years in the face of local opposition and a national focus on developing crude oil resources.

Under the partnership, Opic will mobilize investments to help strengthen energy reserves throughout Latin America, Washburne said. For its part, the DoE will identify regions and sectors that present opportunities for US energy companies, with Opic providing assistance in the form of financing and insurance when it is unavailable from the private sector.

“There is a profound opportunity in Latin America today for their energy future, for their economic security,” Perry said. “And the return of benefits can be extraordinary for the western hemisphere, not just Latin America.”

Opic already supports a variety of global energy ventures, and about 25% of its $23bn global investment is in Latin America.