MercoPress. South Atlantic News Agency

Regional presidential summit to address winter gas supply

A presidential summit of Argentina, Brazil and Bolivia leaders is scheduled for next February 23 in Buenos Aires to try and find a solution to the anticipated shortage of Bolivian natural gas supply next winter if as estimated Argentine and Brazilian demand increases over last year's volume.

The summit was arranged following on this week's Bolivian vice president Alvaro Garcia Linares visit to Brazil where he confirmed that his country's gas supply would be insufficient to cope with increased demand from the neighboring countries. "We're going to jointly address the issue to try and find a solution and certain balance in the distribution of the available gas", said President Evo Morales in La Paz during a press conference when he ratified Bolivia has difficulties in honoring its supply commitments. "Contracts not always are easy to comply with" he admitted and called for dialogue, "problems can be solved when they are addressed with transparency, sincerity and complementation spirit between friendly and neighboring countries", said Morales. The meeting is scheduled for Saturday Feb 23 when Brazil's Lula da Silva will be on an official state visit to Argentina. During the summit the supply situation and the investment plan in the Bolivian hydrocarbons sector will be analyzed by the three presidents and their energy advisors. According to the Buenos Aires press sources from the Planning Ministry said that Argentina is "confident" that Bolivia will comply with the agreement signed last year between President Morales and his then counterpart Nestor Kirchner for the daily provision of up to 7.7 million cubic meters of gas. But the Argentine press also points out that the quick reaction to vicepresident Garcia Linares visit means there is concern. Apparently the Bolivian official said in Brazil that current levels of supply are ensured but certainly not the 2 to 3 million cubic meters additional provision to cope with the expected winter demand increase. Another issue on the table will be the price each country pays for Bolivian natural gas. Argentina currently has contracts at 6 US dollars per million BTU while Brazil managed a better deal with 4.6 US dollars. Bolivia is currently pumping 27 to 29 million cubic meters of natural gas per day to Brazil.