Detailed analysis of construction of the South gas pipeline

CARACAS
Engineering plans and construction costs were among issues discussed at the 2nd meeting of the Ministerial Committee of the Great Gas Pipeline of the South, an integration project currently being promoted by the Venezuelan government.

In this second coordination and planning meeting for the work, which covers an area of approximately 8,000 kilometers, the presidents of Argentina, Brazil, Venezuela and Bolivia were given details of this last country’s incorporation into the project.

The Energy and Hydrocarbons representatives from the four nations involved approved the timescale for works on the gas pipeline, which will run from Venezuela to Argentina, passing through Brazil.

They also announced the assignation to Bolivia of $150,000 for the development of an environmental study prior to becoming part of the plan. The committee has programmed its next meeting for September in La Paz.

In addition, it was decided to create a group to study the effects and viability of a Transitory Enterprise Union and another permanent commission to present the terms and conditions for contracting the conceptual engineering for the project.

The project, at an estimated cost of $20 billion, is to incorporate natural gas from Bolivia, a country that has the third largest gas reserve on the continent, into that produced by Venezuela.

The state enterprises ENARSA of Argentina, PETROBRAS of Brazil, Bolivian Fiscal Oilfields (YPBF) and Venezuelan Oil (PDVSA) are responsible for the project.

According to the plans, the gas pipeline should be underway in 2017, which is why technical teams are working on the evaluation of the environmental impact and projected route.

President Hugo Chávez views the project as an investment that would be recouped within a short period, as it was designed on the basis of a plan allowing income via a functioning route.