Argentina’s energy crisis: Chile to the rescue by 2009

Growing natural gas supply cuts to Chile because of the Argentine energy crisis have caused the Chilean economy a half point GDP loss in 2006 and so far this year losses equivalent to 307 million US dollars to the manufacturing industry.

However by 2009 the situation could have reversed to such an extent that the now rachitic flow along the trans-Andes gas pipelines could be fully bloating in opposite direction.
When the energy crisis was still a distant nightmare, Argentina had a contract to supply Chile an average 22 million cubic meters of natural gas per day, but that volume in 2006 dropped to 17 million cubic meters and currently stands, following the cold spell, at 1.8 million cubic meters which only just helps guarantee residential consumption.

Chilean statistics show that last February Argentine gas supply cuts averaged 47%; in March 55%; in April 60%, May 70 to 80% and in the last two weeks almost 100%, only soothed following a “political understanding” between the neighboring countries governments to avoid complications for Chilean president Michelle Bachelet.

According to the Chilean Central Bank the country’s GDP lost over 0.4% last year because of gas restrictions, particularly in the manufacturing sector forecasted to grow 3.8% and which had to accept a more modest 2.53%.
But actually what most worries the Bachelet administration is the social and political restlessness impact of long term supply restrictions to homes.

MercoPress