Mexico-led $7bln Centam refinery project in jeopardy

By Robert Campbell

MEXICO CITY, Sept 25 (Reuters) - An ambitious Mexican-led project to build a $7 billion oil refinery in Central America is under threat after potential builders backed off from the project this week.

An international bidding process led by a unit of Mexico's state oil company Pemex concluded on Monday with none of the four qualified companies presenting offers for the project, Mexico's energy ministry said on Thursday.

Guatemalan Energy Minister Carlos Meany told Reuters the failure of the bidding process after months of delays could lead to the project being scrapped.

"A meeting of the interested countries is planned for the ninth and tenth (of October) ... to see whether to have a second step, or to cancel the process," Meany said by telephone in Guatemala City.

The four qualified bidders -- Valero Energy Corp (VLO.N), Itochu Corp (8001.T), Reliance Industries (RELI.BO) and Colombia's state-controlled oil company Ecopetrol ECO.CN -- decided not to bid due to rising construction costs and pessimism over the prospects for global refining margins, Mexico's energy ministry said.

The refinery was a key part of former Mexican President Vicente Fox's sweeping plans to boost economic development in Central America by building a regional energy infrastructure that would help cut power and fuel costs.

Mexico initially offered to supply the proposed 340,000 barrels per day capacity refinery with 230,000 bpd of Mexican crude for an eight-year period but has since cut its commitment to 80,000 bpd due to dwindling output from its aging Cantarell oil field. (Additional reporting by Sarah Grainger in Guatemala City; Editing by Walter Bagley)