MercoPress. South Atlantic News Agency

Argentina suggests checking Chilean gas distributors

Chilean natural gas distributors rejected Monday statements by Argentina's Federal Planning Secretary who accused them of taking “excessive advantage” of Argentine gas prices.

De Vido interviewed over the weekend by the Chilean television said that Argentine natural gas, before taxes, reaches the border "with a price of 1.80 US dollars per million BTU", which then is distributed to the Chilean consumer at prices of up to 24 US dollars per million BTU.

However Chilean industry sources quoted in the Santiago press pointed out that the average price to the average Chilean home consumer was 21.7 US dollars per million BTU and "not 24 US dollars as stated by Mr. De Vido".

The industry also rejected De Vido cost numbers saying that Argentine gas for supply in Chile has a price tag of three US dollars per million BTU which soars to 5.5 US dollars when it includes transport and operational expenses.

Beginning this week Argentine natural gas sold to Chile will include a special tax ("retention") with a final price on the border of just below 4 US dollars per million BTU.

In the interview De Vido said that the tax is to help compensate the higher price Argentina has to pay for Bolivian gas which is now 5 US dollars per million BTU.

"Compared to the region Chile is paying a very reasonable price", pointed out the Argentine official who also emphasised that "Argentina has never shut off the gas tap to Chile" and when shortages have occurred "these were not out of whim".