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Weekly Report - 10 January 2008 (ISSN 1741-7422)
ARGENTINA, BOLIVIA & BRAZIL: Bolivia reduces gas supplies to neighbours
President Evo Morales confirmed last week that Bolivia will not be able to
supply the volume of gas specified by current contracts with Argentina and
Brazil. Morales said that Bolivia would try to find "an equilibrium"
in the dispatch of gas to the neighbouring countries, thereby avoiding further
shortages at times of peak demand - such as winter months in Argentina. This
declaration suggests that the Bolivian government is willing to reach a
negotiated solution with Argentina and Brazil over gas supply shortages.
Argentine and Brazilian officials expressed concern, however, at the assertion
by Bolivia's hydrocarbons minister, Carlos Villegas, that "priority will be
given to supply domestic demand".
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