Argentina's government has modified the 2007 federal budget to help finance energy infrastructure projects and to cover the cost of importing natural gas from Bolivia, according to a resolution issued Friday.
Cabinet chief Alberto Fernandez, who has the power to make changes in the budget, authorized an additional Argentine Pesos 313 million ($99.6 million) for the planning ministry, which oversees energy affairs.
The modification is a response to "the necessity to continue with the development of policies of public works and energy, and to meet the spending on imports of gas from Bolivia," according to the resolution.
Argentina imports up to 7.7 million cubic meters/d of gas from Bolivia to help meet increasing domestic demand.
Argentina is becoming increasingly reliant on imported energy because of low investment in exploration. The private companies that dominate the sector are hesitant to spend because low gas prices, high export taxes, short concession contracts and regulatory uncertainty are crimping potential returns and making it hard to plan business.
The country, which has suffered gas shortages of up to 30% of demand since 2004, plans to build a $1.64 billion pipeline to step up imports of Bolivian gas by 20 million cu m/d.
The government also is spearheading construction of power plants and is considering building two LNG receiving terminals to improve energy supply, one in conjunction with Uruguay.
Cabinet chief Alberto Fernandez, who has the power to make changes in the budget, authorized an additional Argentine Pesos 313 million ($99.6 million) for the planning ministry, which oversees energy affairs.
The modification is a response to "the necessity to continue with the development of policies of public works and energy, and to meet the spending on imports of gas from Bolivia," according to the resolution.
Argentina imports up to 7.7 million cubic meters/d of gas from Bolivia to help meet increasing domestic demand.
Argentina is becoming increasingly reliant on imported energy because of low investment in exploration. The private companies that dominate the sector are hesitant to spend because low gas prices, high export taxes, short concession contracts and regulatory uncertainty are crimping potential returns and making it hard to plan business.
The country, which has suffered gas shortages of up to 30% of demand since 2004, plans to build a $1.64 billion pipeline to step up imports of Bolivian gas by 20 million cu m/d.
The government also is spearheading construction of power plants and is considering building two LNG receiving terminals to improve energy supply, one in conjunction with Uruguay.
