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Punta Arenas Hot News.

Friday, May 21st 2004 - 21:00 UTC
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Headlines:
Methanex cuts production and argues with Minister; Patagonia relations strained; Punta Arenas incorporates factory ship.

Methanex cuts production and argues with Minister

Punta Arenas based Methanex complex, the world's leading producer of methanol has been forced to cut daily production by 700 tons as a direct consequence of Argentina's decision to limit the supply of natural gas. President Nestor Kirchner administration last week unexpectedly decided to revert a million cubic meters of the natural gas daily supply from Magallanes region to the city of Buenos Aires. "According to current production patterns, our daily production will be reduced 7% equivalent to 700 tons of methanol per day", said Methanex in an official release to Punta Arenas press. The company also points out that the building of a fourth block to be incorporated to the complex "has not been affected by the natural gas supply problems". "We are in contact with our natural gas suppliers and Chilean and Argentine authorities to solve the situation as most effectively possible". However, one of the companies' main representatives had a public argument in Santiago with the Chilean Minister of Economy during the monthly breakfast at the Chilean-US Chamber of Commerce. Methanex Latinamerica vice-president Rodolfo Krause openly told Minister Jorge Rodríguez that the business community as a consequence of the gas crisis, "had lost confidence in Chile". Minister Rodríguez immediately replied that "there's no loss of confidence in Chile", rather "it's Argentina's confidence that is at stake" adding that Chile is a victim of the situation, "not the victimizer", the gas supplier "let us down". The Chilean minister insisted that all economic forecasts indicate that "the country is reliable, trustworthy and investors have full confidence". Finally Mr. Krause said he did not intend to be aggressive but it must be admitted that "there's an additional risk factor for Chile, which all investors will take into account, whether they consume natural gas or not, because this situation is increasing the country's risk factor". With greater risks involved, "investors will be planning a greater and faster profit return".

Patagonia relations strained

Relations between Chilean Magallanes Region and neighbouring Argentine provinces are beginning to feel the strain of the energy crisis originated in Argentina. Following the recent cuts of natural gas supply to Magallanes region, Mayor Juan Morano sent an official letter to the Argentine consul in Punta Arenas requesting concrete gestures of integration. The three points letter addressed to consul Julain Tettamanti highlights that even when the natural gas supply cuts apparently only refer to the local methanol complex, "which is not a minor issue", it is essential to formally explain the cause of the restrictions, and "if this short, medium or long term action" could have a future impact for residential, commercial, industrial consumers or electricity generating plants. And even when Mr. Morano values Mr. Tettamanti's efforts in bringing together the peoples of Argentina and Chile and has "personally shown an undisputed integration willingness", that "same spirit demands of daily concrete actions", stresses the letter. Further on it points out that, be it sports clubs, joint community activities, meetings of elected officials, "integration needs for governments to show with facts that their decisions and intentions are effectively committed to integration". Acting accordingly Punta Arenas Mayor Jaime Jelincic requested the postponement of the coming Borders Committee and Patagonia authorities meetings scheduled for next June 3 and 4 in Rio Gallegos. Mr. Jelincic is also planning a trip to neighbouring Argentine provinces to stress "disillusion and concern" over the recent natural gas cuts, hoping that his Argentine provincial counterparts will help him send a strong protest message to Buenos Aires.

Punta Arenas incorporates factory ship

A Punta Arenas fishing company has requested an environmental assessment for a factory vessel with a daily processing production of 48 tons that will be operating between 44 and 57 degrees S along the Chilean coast. The 90 meters long "Ocean Dawn" with a crew of fifty belongs to Pesquera Sur Austral and will be trawling for different types of hake which will be conditioned, frozen and market ready packed on board with a fifty days maximum autonomy. The Chilean Fisheries Office regional director Patricio Díaz said the "Ocean Dawn" will be replacing one of two vessels, "Gualas" or "Jin Yang" belonging to the former company Yelco. "The newly formed company owns the fishing licences of Yelco and will operating them according to regulations and conditions", indicated Mr. Díaz. Yelco became famous seven years ago when it tried unsuccessfully to incorporate "American Monarch", a vessel that was to specialize in surimi. Mr. Díaz confirmed that the "Ocean Dawn" will require two environmental assessments, one from the Magallanes region and the second in neighbouring Aisén region.

Categories: Mercosur.

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