South American political pipeline
opens for natural gas network
The Associated Press
Thursday, January 19, 2006
Chavez: New era of regional cooperation in South America
From left, the presidents of Venezuela, Argentina
and Brazil join hands after a meeting in Brazil.
BRASILIA, Brazil (AP) -- Venezuelan President Hugo Chavez said Thursday that Brazil, Argentina and his country would move forward on a proposed natural gas network spanning much of South America, adding that the agreement heralded a new era of regional cooperation with less U.S. influence.
"This is the end of the Washington consensus," Chavez said, referring to a set of U.S.-backed free market policies meant to solve South America's economic woes. "It is the beginning of the South American consensus."
After a three-president summit in the Brazilian capital, Chavez, Argentina's Nestor Kirchner and Brazil's Luiz Inacio Lula da Silva confirmed plans to develop a proposed 8,000-kilometer (5,000-mile) natural gas pipeline they hope will spread economic prosperity across vast swaths of South America.
The three leaders -- representing South America's three biggest economies -- have committed their "political will" to carry out the project and will meet again March 10 in Mendoza, Argentina, Chavez said after the meeting.
Kirchner and da Silva did not talk to reporters but in a joint statement at the end of the summit the three leaders instructed their energy ministers to give priority to the plan.
The pipeline would stretch from Caracas, Venezuela, to Buenos Aires, Argentina, cutting through Brazil's Amazon rain forest. It would also link to Bolivia, Paraguay, and Uruguay.
Chavez played down concerns that the pipeline would create competition for Bolivian natural gas and called on that country's president-elect, Evo Morales, who takes office Sunday, to sign on to the plan.
"I have spoken with Evo, and I can say there is nothing to fear," Chavez said. "There will be gas for 200 years of development."
The pipeline "is not to compete with but to complement" the economies of South America, he added.
"Evo has said he will nationalize the gas industry. I hope he does it soon," Chavez added, saying Morales' election had "paved the way" for the pipeline.
Chavez also predicted the pipeline would be completed within seven years and dismissed doubts about the technical feasibility of the project, saying, "The Russians built a 4,000-kilometer (2,500-mile) pipeline to supply gas to Europe."
The Venezuelan president predicted no difficulty in paying for the project, estimated at $20 billion (euro 16.6 billion). Chavez said several big Asian companies were willing to invest in the pipeline, including firms from China, though he did not identify them.
All countries involved will help finance the project, and Venezuela's state-run oil conglomerate will pour in "several billion" dollars, Chavez said, adding that "there will be more financing than we might need."
It wasn't clear how much each country would invest, but Chavez said the investments would pay for themselves if some countries -- especially Brazil and Venezuela -- change their gasoline-powered automobiles to natural gas.
According to Chavez, that shift alone would allow for a massive increase in gasoline exports by both Venezuela and Brazil, generating as much as $15 billion (euro 12.4 billion) in annual revenue.
Argentina has the world's largest fleet of cars running on natural gas, followed by Brazil.
Chavez said a first draft of the proposal will be announced by March 9, including plans for centers of development along its path.
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