FOR IMMEDIATE RELEASE
Monday, July 29, 2002

(Printer-friendly version)

For further information, contact:
Lawrence Spinelli (202) 336-8690
Timothy Harwood (202) 336-8744

OPIC INSURANCE HELPS U.S. SMALL BUSINESS EXPAND
LPG STORAGE CAPACITY IN CENTRAL AMERICA

Watson: project has economic and environmental benefits

WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) announced today that it would provide $25 million in political risk insurance to a U.S. small business that is constructing the largest liquefied petroleum gas (LPG) storage facility in Central America, more than doubling the region’s capacity.

OPIC insurance will cover Texas Overseas Gas Corporation of San Diego for construction and operation of an 18-million gallon LPG storage facility near Puerto Quetzal on the coast of Guatemala. The facility consists of 18 tanks, a piping connection to the port and parking areas. Using LPG procured on the international spot market, the facility will serve markets in Guatemala, El Salvador, Honduras and Nicaragua. Current LPG storage capacity in Central America is 13 million gallons; the new facility will therefore expand regional capacity by 140 percent.

OPIC President and CEO Dr. Peter Watson said the increased supply and distribution of LPG will likely reduce prices in local markets, as well as carbon emissions. As LPG becomes more affordable, it could become an alternative fuel source to firewood and indirectly mitigate deforestation, he said.

OPIC was established as an independent agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.

Over the agency’s 30-year history, OPIC has supported $142 billion worth of investments that have helped developing countries to generate over $11 billion in host-government revenues and create over 673,000 host-country jobs. OPIC projects have also generated $64 billion in U.S. exports and create more than 253,000 American jobs.