Argentina, Bolivia and Uruguay Sign Energy-Integration Agreement

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Researched by Researched by Industrial Info Resources (Sugar Land, Texas)--Argentina, Bolivia and Uruguay have signed an energy-integration agreement that will allow the three countries to exchange electricity and gas.

Argentina's planning minister, Julio De Vido; Bolivia's hydrocarbons and energy minister, Luis Vicente Vargas; and Uruguay's minister of industry and energy, Roberto Kreimerman, signed the document on July 8, in Buenos Aires, Argentina.

The treaty provides a frame of reference for all past and future energy agreements between the three countries.

The agreement states that Bolivia will sell 300,000 cubic meters per day (10.5 million cubic feet per day) of gas to Uruguay. The gas will be transported via Argentine pipelines.

This new understanding points out that when Argentina consumes more natural gas, Uruguay is forced to pay higher gas prices because of Argentina's consumption.

Uruguay's media have stated that prices will be based on transportation and production figures. Uruguay authorities expect Bolivia's natural gas supply to start before the end of this year. The gas will be for residential use and power generation.

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