Guatemala struggles to meet electricity demand efficiently, relying on outdated coal plants and climate-sensitive hydropower. It is connected to neighboring countries via the Central American Electrical Interconnection System and Mexico. Power shortages cost the country $5 billion annually, affecting industry, commerce, and GDP. Generation costs and consumer prices are among the highest in the region, with a marginal electricity price of USD $116/MWh in 2024 (Source: PEG-5-2025).

In April 22nd, 2025, the Government of Guatemala launched the Terms of Reference (ToR) for a 1,400 MW electricity generation tender, focused on renewable energy and natural gas. The tender will be managed by the state-owned companies through Power Purchase Agreements (PPAs). Proposals are expected to be submitted on March 2026 (Source: PEG-5-2025).

Our company: “Guatemala LNG S.A.”, in partnership with international and local firms from the USA and Guatemala, has developed a LNG-to-Power solution for Guatemala. This infrastructure involves the import of Liquefied Natural Gas (LNG) via a permanently moored offshore Floating Storage Unit (FSU) located on the Atlantic coast of Guatemala. The FSU will consist of an FSU provided by Norway Company. It will have a storage capacity of a minimum 150,000 m³ of LNG and an annual import capacity of 0.5 million tons, delivered by LNG carriers from the U.S. Gulf Coast with an average travel time of 18–20 hours.

The LNG from the FSU will be regasified via a based IQuay-regasification unit using a Finish-Norway technology. Once the LNG is regasified, the natural gas will be transferred to shore using a gas pipeline infrastructure of 14-km-long, 14-inch-diameter pipeline (API 5L, Grade 55). Once onshore, the natural gas will fuel a 5x1 combined-cycle power plant with a gross capacity of 400 MW, scheduled for commissioning in late 2029. Overall, the project will deliver over 400 MW of gross output using Siemens SGT-800 series gas turbines. Electricity will be transmitted through a 230 kV line to the Santo Tomás Substation, 850 meters from the plant. The substation will be upgraded from 69 kV to 230 kV and extending 2 Km to the new Substation Atlantico, of which is linked to the national grid through 55 km line to the Morales Substation.

A 8-hectare onshore site has been secured. Key permits and authorizations (EIA, AMM, CNEE, DGH, DGE) began in May 2025 and are expected by First Quarter 2026. Separately, Guatemala LNG S.A. has signed an HoA for a PPA with one of the largest electricity trader in the country for the full 400 MW. The company is negotiating LNG supply with several suppliers from the USA.

The total investment is projected to reach USD 580 million.