MercoPress. South Atlantic News Agency

Argentina: “crisis manageable” and 220 volts restored

With help from Brazil, Bolivia and Venezuela the Argentine Electricity Wholesale Market Agency, Cammesa, ordered this Tuesday the resumption of 220 volts tension in the national grid, 24 hours after having decided a 5% drop, to 209 volts, to help confront the country's growing energy shortage.

According to Cammesa sources as of today Brazil began supplying 500 Megawatts; local natural gas producing companies are injecting from their own reserves an additional 3 million cubic metres per day which could reach 5 million; Bolivia has promised to pump more natural gas and Venezuela's government oil company will be supplying 700,000 of fuel oil for use in electricity generating plants.

President Nestor Kirchner's cabinet chief Alberto Fernández talking to journalists in Buenos Aires said the lack of electricity was virtually solved underlining the significance of the contracts agreed with Brazil, Bolivia and Venezuela.
"We've dominated the crisis, I think it's virtually solved", said Mr. Fernández.
The cabinet chief revealed that visiting Petroleos de Venezuela's CEO Ali Rodríguez (South America's largest oil company) had offered Argentina 700,000 tons of fuel oil "which will enable thermoelectric plants to replace natural gas".
"If we manage to replace fuel oil with natural gas, there shouldn't be a gas shortage fro heating in homes this coming winter".

But private sources revealed that generating plants are refusing to change because fuel oil is seven times dearer and rates under no circumstances cover additional costs. "It's an additional cost we'll have to pay because those companies that had to explore and exploit natural gas at well level didn't make the necessary investments. We're considering alternatives to solve the issue", added Mr. Fernández.

Sources from the Argentine electricity distribution system estimated that the natural gas shortage is close to six million cubic metres per day, equivalent to the 1,100 Megawatts supplied by Brazil and the liquid fuel generating plants.

Experts also revealed that the natural gas pipeline system in Argentina has an idle capacity equivalent to 20 million cubic metres per day, but producers have not been extracting greater volumes because of the rates dispute with the government.

Argentina's electricity generating system in mostly fuelled with natural gas. Cammesa reliable sources indicated that in spite of the "normalization proximity" process the elements which generated the crisis "persist", and "we're closely monitoring demand".