MercoPress. South Atlantic News Agency

Concern with political consequences of energy crisis.

Argentine diplomacy is concerned with the political consequences of the current energy crisis for regional integration and ideological identification.

Reliable sources in the Argentine Foreign Affairs Ministry revealed to the Buenos Aires press that "there's concern and uncertainty about derivations of the energy crisis, not economically but politically for regional integration precisely at the moment of greatest ideological identification in the region".

"We don't want this (energy crisis) to hamper our excellent relations with Chile. We're most interested in salvaging the international relation".

Chilean delegates who visited Buenos Aires to talk about the natural gas contract "were most understanding of the Argentine situation and it was a very cordial meeting", said Alfredo Scocimarro, spokesperson for the Argentine Planning Ministry.

"At no moment during the talks did the Chilean delegates put forward the idea of initiating legal actions for breach of supply contract", said Mr. Scocimarro.

Argentine Energy Secretary Daniel Cameron indicated that Argentina in 2003 exported 6.750 million cubic metres of natural gas, --a 15% increase over 2002--, of which 94% is pumped to Chile through five pipelines built in the nineties.

Of that volume which on occasions has reached 22 million cubic metres per day, Chile consumes 30% in generating electricity; 28% in industry; 36% in the Magallanes methanol complex and 6% for residential consumption.

To cope with the energy crisis the Nestor Kirchner administration will be increasing electricity purchases in Brazil and an additional 4/5 million cubic metres per day of natural gas from Bolivia.

However, Bolivia that has a longstanding maritime dispute with Chile has conditioned the sale of natural gas to Argentina as long as it does not end in Chile.

Mr. Cameron told the press in Buenos Aires that "the standing supply of gas, which can't be interrupted, has a guaranteed provision for the coming winter".

Argentine natural gas producers have announced that in the coming four weeks they will be increasing daily supply to the pipeline system in five million cubic metres which will come from winter reserves.