Kirchner, Jujuy Sign MOU to Finance Gas Pipeline Interconnection
The first stage of the pipeline linking Jujuy to southern Bolivia will be a 95km pipeline from the Bolivian border city of La Quiaca to the Norandino pipeline at Miraflores in Argentina, newspaper La Nación reported.
Argentina currently supplies gas to northern Chile through the Norandino pipeline.
The federal government will provide 12.6mn pesos for the Jujuy-La Quiaca pipeline, while Jujuy province will provide the remainder, the letter said.
Works on the pipeline will start in 90 days, La Nación reported.
The Jujuy-La Quiaca pipeline will later be extended with the Catamarca and La Rioja pipelines as well as secondary pipelines whose financing is being finalized, newspaper El Cronista quoted federal planning minister Julio De Vido as saying.
The interconnection project with Bolivia was announced in 2004 as part of plans by Argentina's government to reverse an energy crisis in the country caused by frozen gas and power tariffs and lack of investment in energy infrastructure following the devaluation of the peso.
Bolivia currently exports some 7 million cubic meters of gas a day (Mm3/d) to Argentina, but the new pipeline project is designed to increase that by about 20Mm3/d in the next few years.
Before the new pipeline can start operations, however, Bolivia and Argentina must reach an agreement on prices. Bolivia's President-elect Evo Morales has said that Bolivia will no longer export gas to Argentina at current low prices of about US$2/MBTU.
Morales is scheduled to meet with Kirchner in Buenos Aires on January 17 to discuss raising gas prices, according to a previous BNamericas reports.
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.
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally