MercoPress. South Atlantic News Agency

Argentina rations natural gas supply to Chile

Chilean Economy and Energy Minister Jorge Rodríguez confirmed in Santiago that beginning April 1, Argentina will ration the flow of natural gas, the country's main supplier.

However Mr. Rodríguez insisted that this would not have an impact in electricity distribution for Chile even when Argentina gave no date of service resumption.

The reduction will be equivalent to 2,3 million cubic metres per day and will mean a shortfall for three electricity generating plants, one in the main metropolitan grid and two others in the north of Chile.

Mr. Rodríguez revealed that Argentine officials informed him of the reduction the day before, but this will not mean electricity rationing.

"We're going to make operational all coal plants and we'll convert to liquid fuel several of those that consume natural gas".

"I discard any possible rationing of electricity because of a shortfall of Argentine natural gas supply". Cornered by an energy crisis, president Nestor Kirchner administration decided last week to give "priority" to the domestic market therefore reducing export surplus. The blow is particularly damaging for Chile that imports 90% of its natural gas consumption from Argentina, with 25% of electricity generation dependent on those imports.

In related news Argentine Energy Secretary Daniel Cameron unexpectedly flew to Brazil to meet his counterpart Energy and Mining Minister Dilma Rousseff. Apparently the Brazilian energy support, electricity and trumpeted as an example of regional solidarity, is limited in volume and time.

"Supply is not permanent, and limited to 48 hours periods. It's the emergency system of our grid. We have a cooperation agreement with Argentina and when there's an emergency we act", indicated Ms Rousseff in the Brazilian congress.

However the distribution problem must be solved by Argentina, "we can transport up to 2,000 Megawatts, I believe Argentina is limited to 500 MW, so we are assessing the situation and won't have final results until May 15", added Ms. Rousseff.

Besides Argentina also supplies surplus natural gas to a thermoelectric generating plant in Uruguayana, in the Brazilian-Argentine border, and if the flow is cut or reduced, (1,1 million cubic metres per day), the neighbouring state of Rio Grande do Sul will face a 10% electricity generating shortage.