Argentina, Bolivia sign energy cooperation agreement


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Argentine President Nestor Kirchner and his Bolivian counterpart, Carlos Mesa, recently signed an agreement on energy cooperation in Uruguay which was within the framework of the South American Common Market (Mercosur).

The two leaders reaffirmed the "interests of both parties in the promotion of the development of their energy and natural gas connection infrastructure."

Argentina and Bolivia are principal producers of natural gas in the region. The agreement will enable the two countries to promote the import and export of the fuel between them.

The agreement falls within Argentina's project of building the Northeast Gas Pipeline spanning six provinces, some bordering Bolivia. The project needs an investment of one billion US dollars, of which 750 million will be provided by the Argentine firm, Techint.

The pipeline will also supply fuel for Brazil by connections with the system of gas pipelines which has already reached the city of Uruguayana in Brazil.

The second stage of the work will extend the principal pipeline, increase its supply and consolidate the energy integration of South America with a 280-million-dollar investment. The pipeline is estimated to be completed by 2006.

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