On Friday, 10 August 2007, Argentina’s President, Néstor Kirchner, and Bolivia-based, Evo Morales, signed an agreement for the construction of a new gas processing plant during a meeting held with Venezuela’s head of state, Hugo Chavez. The agreement also consolidated Bolivia’s active incorporation to the Organization of Southern Countries that Produce and Export Gas, which aims at South America’s power integration. This will be one of the largest gas plants in South America and should be complete and processing by 31 December 2009. Argentina will invest USD 450 million in this plant, which will have a processing capacity of 38 million of cum of gas per day. The new gas processing plant may be located in Campo Pajoso, in Gran Chaco de Tarija Province Southern Bolivia, 12mi away from the Argentine border or in Cototo “B” Area, near Viamontes, 43mi from the frontier. The main goal for the plant will be to allow Bolivia to increase revenues from gas exports to Argentina, which already receives 4.6 million cum per day. After the project’s completion, Bolivia’s gas export to Argentina should be increased to 27.7 million cum per day by the year 2010, and this production level should be maintained for the following 20 years. The construction of a pipeline, Gasoducto Noreste Argentino, is also necessary to be able to comply with the agreement. Argentina’s and Bolivia’s presidents have agreed on launching international bids for the plant and pipeline construction.
