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Argentina starts pipeline plan to boost gas imports from Bolivia
AFP
Buenos Aires
Petroleumworld.com 06 28 07
Argentine President Nestor Kirchner Wednesday signed a decree launching
construction of a pipeline that will increase the country's natural gas
imports from Bolivia, designed to help improve domestic energy supply.Kirchner signed the decree in Buenos Aires after a meeting with Bolivian
Hydrocarbon Minister Carlos Villegas Quiroga, according to a statement by his
office.The decree organizes the first stage of the so-called Northeastern
Argentine Pipeline (GNEA), which will transport Bolivian gas to the provinces
of Chaco, Corrientes, Formosa and Misiones in the northeast of Argentina,
substituting the use of LPG and other pricier fuels. In a later stage, the
line will be extended so gas flows to the province of Santa Fe.The budget for the first stage of the project is 2.31 billion pesos
($747 million), according to the statement.Argentine Planning Minister Julio De Vido, Kirchner's chief energy
planner, said that Argentina's state energy company Enarsa will organize
bidding rounds for works related to the project. Bidding documents for
participating in a tender for the provision of pipes for the line will go on
sale July 2, he said.GNEA will allow Argentina to increase gas imports from Bolivia to 27.7
million cu m/d from a current maximum of 7.7 million cu m/d, De Vido said. The
minister said the line will be able to start bringing in an additional 8
million cu m/d to Argentina by the end of 2008.There is concern that Bolivia won't have enough available gas to supply
the line, given that in recent weeks it has prioritized deliveries to its own
communities and to Brazil, the only other export market for the country's gas.
To help ensure that there is gas for GNEA, De Vido said Enarsa will
participate "in the development of reserves in the Bolivian territory in areas
that today are of Yacimientos Petroliferos Fiscales Bolivianos," the state oil
company of Bolivia.Argentina needs more gas -- which supplies 55% of the country's energy
needs -- as demand is increasing faster than domestic production and the
addition of transport capacity. The country produces 140 million cu m/d of
gas, of which it uses between 125 million and 135 million to supply the
domestic market. It exports up to 20 million cu m/d, mostly to Chile.The total cost for building GNEA is expected to be $1.6 billion, with the
line fully operational by 2010.For more news, request a free trial to Platts Gas Daily at
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or subscribe now at
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Platts 27 06 07
Copyright© 2007 AFP. All Rights Reserved.
AFP 27 2031 GMT 06 07
Copyright© 2007 AFP. All Rights Reserved.
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