Gas Pipeline Project Planned Between Bolivia and Paraguay

Paraguay's public works ministry (MOPC) has received five proposals for a US$300mn natural gas pipeline connecting Bolivia with Paraguay, the ministry announced in a statement. A consortium of local company Electrogas, Tradimex and Germany's Thyssen Krupp and Siemens proposed a pipeline from Bolivia's Tarija department to Paraguay's Chaco region to Concepción department's Vallemí district.

Anglo-Argentine firm PanAmerican Energy (PAE) would establish a network including northern Chile's city Iquique in the west and the port of Paranaguá in Brazil's Paraná state in the east, the source said.

Southern Cone Group and local companies Empresa Termo Asunción and Electrogas each submitted proposals involving a pipeline integrated with gas-to-liquid and power generation plants.

Representatives from Bolivia's state oil company YPFB and its Paraguayan counterpart Petropar will call for all interested companies formally to present their proposals.

The two companies plans to give a technical group 60 days to develop the basic reference terms for the project, the source said.

The Inter-American Development Bank (IDB) will carry out a US$1.5mn feasibility study on the project, the statement said.

The pipeline would transport approximately 20 million cubic meters a day of gas. Paraguay hopes that Bolivian gas could substitute at least half of its 7,000 tonne a month liquefied petroleum gas consumption at competitive prices, the statement said.

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Posted 12/06/06

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