LA ROMANA, Dominican Republic (AP) - Leaders from 10 countries met in the Dominican Republic on Friday to work out details of a proposed multinational oil refinery billed as the largest project in Latin America since the Panama Canal.

Panama and Guatemala are the leading contenders for the US$6.5 billion (euro5.07 billion) refinery, which would provide up to 360,000 barrels of crude daily.

Mexico would provide about two-thirds of that supply, with smaller amounts expected from Guatemala and Belize.
Presidents and foreign ministers from nine countries and the host Dominican Republic were arriving Friday for the two-day summit at the upscale Casa de Campo resort in La Romana, some 70 miles (115 kilometres) east of the capital, Santo Domingo.

The agenda also covers development of renewable energy sources, including ethanol made from corn or sugar that is drawing particular interest in sugar-producing nations such as the Dominican Republic.

The refinery is part of a broad Central American energy project meant to include a liquefied natural gas plant, hydroelectric dam and gas pipeline stretching from Mexico to Panama.

Guatemalan Energy Minister Luis Ortiz said Friday that the location of the refinery should be based, "not on which is the better country, but on which is best for the region."

The project is expected to be funded by private investors, who have not yet been disclosed, and the location is to be selected by the Inter-American Development Bank.

In December, when leaders agreed to the energy plan, Mexican President Vincente Fox said the refinery would reduce dependence on fuel from outside the region.
Mexican Energy Secretary Fernando Canales has said the refinery would provide fuel at US$8 (euro6) less a barrel than open-market prices.

The summit includes representatives from Mexico, Colombia, Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and the Dominican Republic.

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