Bolivia, Brazil, Argentina leaders try to avert looming energy crisis

Bolivian President Evo Morales said Thursday he will meet with the leaders of Brazil and Argentina to try to resolve a possible energy crisis because the Andean nation may be unable to supply enough natural gas to meet the needs of its power-hungry neighbors.
While Bolivian officials have said they can meet the needs of Argentina and Brazil this year, increased demand by the two nations could mean shortages in 2009. Natural gas is a key energy source for Brazil and Argentina, which have South America's largest economies.
Morales suggested that the three leaders can probably fashion some sort of plan that would allow Bolivia to divert shipments planned for one country to the other nation when the need arises.
"We will study this between presidents to seek a certain balance in the distribution of natural gas," Morales told a news conference. "Sometimes you have to send more to Brazil or more to Argentina, taking into account the seasons, especially winter, when it's most needed."
Brazil gets about half its natural gas from Bolivia - between 27 million and 29 million cubic meters daily - while Argentine generally buys between 3 and 5 million cubic meters each day.
Bolivian Vice President Alvaro Garcia Linera said this week he expects demand from both countries to jump by as much as 7 million cubic meters daily in 2009. Bolivia's natural gas industry, suffering from tepid foreign investment following Morales' 2006 nationalization, will be hard-pressed to match the increase.
Facing energy shortages at home, both Brazil and Argentina have looked to Bolivia to meet their growing need for the fuel. Last year Argentina signed an ambitious contract drastically increasing the amount of gas it will buy from Bolivia in coming decades.
Meanwhile, Brazil's state energy company Petroleo Brasileiro SA - once frightened off its future Bolivian projects by Morales' nationalization - has publically considered once again investing in the country's valuable gas fields, South America's second largest after Venezuela.