Venezuela
reaches agreements on fuel, natural gas, and petroleum refining
with Argentina and Uruguay
Industrialinfo.com
Houston
Petroleumworld.com 01 18 06
AGREEMENTS BETWEEN ARGENTINA AND VENEZUELA
Crude
Oil Supply
Within
the next year, Venezuela will provide Argentina with five million
barrels of crude oil. The $250 million worth of oil will be paid
with pregnant cows, hospital elevators, and equipment to improve
the production of animal husbandry in Venezuela. "Argentinean
farmers will have all necessary fuel for their machinery,"
declared Venezuelan President Hugo Chavez. The crude oil will
be distilled in the La Brasa refinery in Argentina.
Gas
Pipeline
Argentinean
President Nestor Kirchner and Venezuelan President Hugo Chavez
have agreed to build a $4 billion gas pipeline spanning more than
12,000 kilometers between their two countries. The project will
start in Venezuela's Atlantic fields and the Caribbean (which
contain 56 percent of Latin America's gas reserves) and run to
Rio de la Plata (Argentina) as part of a network including Brazil,
Bolivia, Paraguay, and Uruguay. "The outlining, route, connections,
cost, period of completion and start of operation correspond to
a feasibility study for which we will call for auction,"
President Kirchner explained.
AGREEMENTS
BETWEEN VENEZUELA AND URUGUAY
President
Chavez is also deepening his country's ties with Uruguay. He has
been creating strategic associations with many of his Latin American
neighbors, and he met in August with Uruguay's President Tabare
Vazquez to reach numerous commercial agreements.
The
Uruguayan leader joined Chavez in promoting a "community
of countries" in the region. Vazquez has stated that regional
unity should be reflected in solid integration agreements with
regard to energy, finance, culture and communications. To that
end, the Uruguayan and Venezuelan presidents announced an ambitious
oil exploration and refining agreement. According to the agreement,
Petroleos de Venezuela (PDVSA) will provide Uruguay with crude
oil from the eastern region of Franja del Orinoco, where there
are an estimated 360 billion barrels in reserves. PDVSA will put
into action a new fleet of oil tankers built in Argentina and
Brazil to carry crude oil to the port at Montevideo, Uruguay and
then be refined at ANCAP's refinery there.
"This
agreement will assure Uruguay the total provision of oil for the
next 25 years," Vazquez declared. Moreover, due to an existing
agreement, 75% of the oil obtained by Uruguay from Venezuela can
be paid in 90 days, and the remaining 25% in 15 years plus a two-year
grace period.
The
Venezuelan leader explained that the first oil shipment would
be worth about $40 million.
Venezuela
will invest $12 million of that payment in a Uruguayan plant that
makes alcohol-based fuels from sugar cane grown near the city
of Bella Union. Venezuela will use the Uruguayan fuel in its numerous
new energy projects. These alcohol-based fuels, when mixed in
various proportions with gasoline, are excellent fuels with low
emissions.
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Industrialinfo.com
01/09/06
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