South American Energy Ministers Sign Gas Pipeline Study MoU
|Monday, December 12, 2005
Energy ministers from Brazil, Venezuela and Argentina signed a memorandum of understanding (MOU) for a natural gas pipeline that would stretch from Venezuela to Buenos Aires. The MOU was signed at the Mercosur presidential summit in Uruguay's capital Montevideo. The agreement is limited to Venezuela, Brazil and Argentina, a spokesperson from Argentina's federal planning ministry told BNamericas, although the agreement stipulated that other Mercosur countries would be invited to participate. The length of the pipeline is put at anywhere between 6,000-10,000km, and depending on length, route and capacity, costs could reach as much as US$20bn, with construction possibly a five-year prospect. At an estimated 100 trillion cubic feet, Venezuela's gas reserves are the largest in the western hemisphere.
About Business News Americas: Business News Americas is a multilingual news and business information service that covers the most important original stories in 11 different business sectors throughout Latin America everyday. Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports.
Click here for a Free two week trial to our Latin America Oil & Gas information service.