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Brazil Would Like to Supply Chile with All Its Natural Gas Needs

Brazil's Petrobras offshore platform The Brazilian gas company Petrobras wants to export Liquefied Natural Gas (LNG) to the Chilean market. Petrobras already has LNG projects in Brazil and Uruguay, and officials there are now looking at the possibility of connecting a network of gas pipelines with Chile.

Chilean Petrobras Executive Rafael Fernández confirmed that the company has talked with Chilean companies. "In the last few weeks we have brought together various companies that are great consumers of gas, especially in the electricity sector, and we have looked over all of their interests."

Specifically, Petrobras is considering an "energy swap" with Chile. This means that the company would export LNG via gas pipelines from Montevideo, through Buenos Aires to Chile. At the same time, this plan would permit Petrobras to access the current gas pipeline network between Argentina and Chile.

The potential swap is in the first stages of development. Still, Fernández is not certain that gas and electricity companies are interested in negotiating with Petrobras. "I see complications in at least the next two years of supplying electricity and gas. And these things could get even more complicated," said Fernández.

Last April, Petrobras and Chile's National Oil Company (Enap) pledged to work together in areas including biofuel, oil exploration, and LNG and energy distribution. It now seems that Petrobras has taken the first steps towards connecting the two countries via a strengthening of the LNG activities.

Petrobras has 13 million barrels of oil and gas, and can produce 1.6 million barrels daily. This amount dwarfs Chile's daily consumption rate of 230 thousand barrels. Petrobras can supply 43.5 million cubic meters of natural gas, twice Chile's daily demand.

Santiago Times


  • Show Comments (5)

  • Jay Glenn

    Why not supply the internal market instead
    There is more money to be stolen in the export of the commodity than in the distribution of the resource to the Brazilian public? Think about it, kick back from construction contracts, other countries to blame when the corruption is exposed. It has that familiar smell of Brazilian Business.

  • João da Silva

    Brazilian Dude
    [quote]How the hell is brazil gonna supply chile if we still import it (when allowed to ) from bolivia? Why not supply the internal market instead? WTF???

    We are talking about a different kind of “Natural Gas”.It is produced in Brasilia in abundance. 😉

  • Ric

    Home of South AmericaÀ‚´s Longest Man-Made Desert, the Atacama.

  • ch.c.

    you smell right B.Dude !!!!!!
    A similar situation is your agricultural exports to the tune of over US$ 50 billion annually despite having tens of millions citizens under nourrished and millions in hunger.

    Sad reality.

  • brazilian dude

    I smell a rat…
    No, make that a rat pack (not the original one…). How the hell is brazil gonna supply chile if we still import it (when allowed to ) from bolivia? Why not supply the internal market instead? WTF???

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