Argentina's Govt, Emgasud Sign Patagonia Pipeline Accord

Argentina's government signed an agreement Wednesday with local company Emgasud for the construction of the 243mn-peso (US$81.5mn), 610km Patagonia pipeline, the presidential news service reported.

The pipeline will supply gas to 80,000 people in the provinces of Chubut, Río Negro and Neuquén in Argentina's Patagonia region.

President Néstor Kirchner and federal planning minister Julio de Vido signed the agreement with Emgasud officials and Chubut province governor Mario das Neves.

The 10-12 inch diameter pipeline will transport 1.01 million cubic meters a day (mcm/d) of gas, de Vido said.

Chubut will invest 75mn pesos in the project, the federal government 50mn pesos, Emgasud 60mn pesos, private sector sources 25mn pesos, and the remaining 33mn pesos will come from a sales tax rebate. Emgasud will employ 500 people on the project.

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