Bolivia’s stagnant natural gas sector affects Southern Cone

by Dave

Venezuela’s state oil company has failed to fulfill promises to make badly needed investments in Bolivia’s natural gas fields.

This has contributed to a lack of new production under Bolivian President Evo Morales, which in turn, has had huge ramifications throughout the Southern Cone. Brazil, Argentina and Chile — which all were depending on more gas from Bolivia for their growing economies — find themselves facing energy shortages that seem likely to pinch consumers, businesses and economic growth during South America’s upcoming winter months.

In doing so, Argentina is following the lead of Brazil and Chile, which — having concluded that Bolivia is not a reliable source — are now spending hundreds of millions of dollars to build terminals that would allow them to import liquefied natural gas from Nigeria, Indonesia, Malaysia, Trinidad and elsewhere. (!)