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Bolivia-Argentina gas deal hikes price, bars Chile exports
AFP
BUENOS AIRES
Petroleumworld.com 06 30 06
Bolivian President Evo Morales said Thursday that Argentina has agreed to buy Bolivian gas priced a third higher than previous imports, in a deal that will benefit his country's economy.
The agreement essentially bars Argentina from selling the imported Bolivian natural gas to Chile, resolving a thorny issue. Bolivia and Chile have no diplomatic relations. According to Bolivian officials, Argentina supplies 65 percent of Chile's energy demands.
Morales, speaking after meeting in Buenos Aires behind closed doors with his Argentine counterpart Nestor Kirchner, said they had signed an agreement which provides for Argentina to pay five dollars per million British thermal units (BTU) for Bolivian gas.
The previous price was 3.80 dollars per million BTU.
The deal came after Morales, a Socialist and Bolivia's first indigenous president, nationalized his country's gas and oil sectors on May 1, fulfilling a campaign promise to the people of the poorest country in South America.
"That the price climbed to five dollars is an economic benefit and salve for my country," Morales said in public remarks, flanked by Kirchner, in a Buenos Aires suburb.
He said that nine new trade agreements with Argentina had been concluded, including the gas deal.
Bolivia exports 7.7 million cubic meters (269.5 million cubic feet) of natural gas to Argentina daily.
According to the text of the gas agreement, the Bolivian gas imports are solely destined for Argentina's domestic market and cannot be used in exports to third countries without the agreement of both Bolivia and Argentina.
Thus the text essentially forbids sales to Chile. Bolivia and Chile have been at odds since a war in 1879 deprived Bolivia of its only seaport.
Bolivia refuses to sell Chile any gas until it gets an outlet to the Pacific Ocean.
AFP 29 1919 GMT 06 06
Copyright ©2006 AFP. All Rights Reserved.
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