SANTO DOMINGO, Dominican Republic (AFX) - Dominican officials are pushing for Saudi Arabia to build an oil refinery in the Caribbean country, hoping to end chronic fuel shortages and take advantage of an impending U.S. trade deal.
President Leonel Fernandez hosted the Saudi ambassador to the United States, Turki al-Faisal, for an official lunch at the national palace on Friday, his office said in a statement.
Al-Faisal and the president had discussed a possible refinery, which would supply the eastern United States and the Dominican Republic, in a Washington meeting earlier this year, according to the statement, which did not provide further details about the project.
It's not clear where the oil would come from.
Dominican officials have been trying to lower the price of gasoline, which sold for more than US$4 per gallon (euro0.80 per liter) for much of the year, by pursuing fuel deals with countries like Russia and Venezuela. Prices were down to US$3.61 a gallon (euro0.72 a liter) over the weekend.
They also hope the Dominican Republic's expected entrance into the Central American Free Trade Agreement with the United States will make the country an attractive investment for nations looking for access to the U.S. market.
Saudi Arabia holds over 260 billion barrels of proven oil reserves, a quarter of the world's total. Earlier this year, its estimated daily output was about 9.5 million barrels, or 11 percent of global consumption.
Telephone calls placed Saturday to the Saudi Embassy in Washington were not returned.
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