MercoPress. South Atlantic News Agency

Mercosur energy grid project 90% ready

Mercosur's energy grid documents are 90% ready and could be signed by the six country's presidents involved next December revealed in Montevideo Chilean Economy and Energy minister Jorge Rodriguez Grossi.

Montevideo is the seat of a technical meeting for the creation of an institutionalized Energy Grid that would supply Peruvian natural gas to Argentina, Brazil, Chile, Paraguay and Uruguay.

"We're almost there. We've solved 90% of the issues and we only have two or three points to overcome", insisted Mr. Rodriguez Grossi.

"Our hope and target" is that the agreement can be signed one day before the Mercosur presidential summit in Montevideo next December 8.

He also praised the speed and professionalism with which all sides addressed the subject, "it has been a very efficient, quick process, which I'm convinced will be a complete success".

Some of the pending issues refer to the taxing system each of the countries will be applying and how will this influence the transport of natural gas along the pipelines, as well as the scheme to solve controversies and conflicts.

Rodriguez Grossi said he was hopeful the final touches would be completed between what is left of the Montevideo round and the coming meeting in Chile November 4.

"Solving an issue does not necessarily mean consensus since we must accept differences between countries, but as long as they are crystal clear and understood by all participants", he emphasized.

The Chilean minister said it was crucial that most of the project should be privately financed, and underlined that several companies are interested in the undertaking which is expected to demand over 3 billion US dollars. Among the companies he named French Suez and the Argentine Techint and Plus Petroleo.