In Central America, governments have set cleaner fuel specification limits: between 10ppm and 500ppm on sulphur content. Nicaragua is the only country that hasn’t yet transitioned to these levels, largely due to a lack of appropriate infrastructure. In order to supply cleaner fuel, it’s necessary to upgrade refineries, storage facilities and transportation along the supply chain to prevent comingling with lower quality fuel – a costly process.
What We Did
We started a large investment project in Nicaragua in 2017, to convert the refinery to allow for higher quality fuel. This process began by carrying out a feasibility study, and we’re now started the engineering stage to make the necessary changes to bring the refinery up to spec.
We’re hoping to complete this stage March 2018. Once completed we will to assess full investment required and full timeline required to produce 10ppm diesel. Over time, we hope this will contribute towards a marked improvement in air quality in Nicaragua.
Our refinery upgrade project in Nicaragua is a major undertaking – at this stage we have spent $2million on the engineering stage and will almost three years to complete. At Puma Energy we’re committed to making this kind of investment to improve fuel quality for the long-term.