Gas producers from the U.S. and representatives of Latin American governments had business on their minds during the Natural Gas Supply Association's annual meeting last week in Washington.
Energy officials from Bolivia, Brazil, Colombia, and Venezuela outlined their countries' ambitious plans to expand gas production and pipeline grids in partnerships with foreign companies.
Along parallel lines, a simultaneous South American Business Roundtable conference in Argentina brought U.S. and Latin American gas industry executives together in 140 business meetings to discuss potential partnerships in South American gas transportation and distribution.
LATIN AMERICA BECKONS
In Washington, Julio Sosa Rodriguez, Venezuela's minister of state for international economic affairs, said interregional trade has doubled in Latin America in recent years, but half of the region's imports are from the U.S.
He said U.S. firms should become even more aggressive to capture business in South America.
Francisco Pradas, Intevep SA president, said Venezuela welcomes U.S. and other foreign firms to help it develop oil and gas resources.
Venezuela's exploration historically focused on oil, so 89% of its gas reserves are associated. Now the country wants to increase gas production by private companies and privatize parts of its pipeline network to increase domestic use and exports by pipeline or LNG tankers.
Felix Betancourt, deputy vice-president of Colombia's Ecopetrol, said his country is relying on private investment to develop a large gas pipeline grid that will incorporate gas discoveries and existing pipeline segments.
To encourage competition, Colombia will limit companies to investments in production, pipelines, or distribution. Betancourt predicted gas production will double to 1 billion cfgd by 2000.
Other speakers said Bolivia, Argentina, Chile, and Brazil eventually will be linked in a 6,000 mile, $2.3 billion gas pipeline grid.
Bolivian Energy Sec. Carlos Miranda Pacheco said his country will be the hub of the system, which will result because the countries are adopting "basically the same economic system, which relies on private investment."
He added because social programs are the top priority for funding, "Our states are no longer going to commit money to these kinds of (gas pipeline) projects."
U.S. RESPONDS
U.S. producers got the message.
Ray Galvin, president of Chevron U.S.A. Production Co. and chairman of NGSA, said U.S. producers are enticed by Latin America's untapped resources and increasingly market-focused governments.
Galvin said, "The new openness of Latin American petroleum corporations to natural gas partnerships is indeed encouraging to us. So is the interest of international agencies like the World Bank in funding them.
"In the future, international partnerships will become a primary characteristic of natural gas production in the Western Hemisphere."
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