July 25, 2006
Latin America natural gas Sector to attract $253 Bln Investments by 2030

(Latin America News Digest) - "Latin American natural gas sector is seen to attract investments of $253 bln (199.103 bln euro) in the period 2001-2030, according to projections of United Nations (UN) Economic Commission for Latin America and the Caribbean (ECLAC), released on July 24, 2006.

State-owned companies as Venezuelan Petróleos de Venezuela SA (PDVSA) and Brazilian Petroleo Brasileiro SA (Petrobras) and foreign companies will be the largest investors in Latin American gas sector.

One of the Latin American's priorities will be to avoid the 119 million cu feet gas shortage projected by Mercosur trade bloc to take place in 2025, according to Fernando Sánchez Albavera, director for Natural Resources and Infrastructure at ECLAC. Sánchez Albavera took part in 7th Energy Summit, held in Rio de Janeiro on July 24, 2006.

The main gas reserves are focused in Venezuela, but an immediate growth in natural gas production will take place in Brazil and Peru, Albavera said. Brazil, Peru and Colombia are seen to attract the highest investments. Bolivia, the other Latin American country with large natural gas reserves in the region, will have to implement various measures with the aim to attract again private investors. At present, the moves taken by Bolivia made investors hesitant, Albavera said. Bolivian President Evo Morales signed on May 1, 2006 a decree for the nationalisation of the country's hydrocarbons sector (...)

Gas exploration segment is seen to attract the largest investments of $141 bln (110.962 bln euro) in the period 2001 to 2030, Albavera said. Some $112 bln (88.14 bln euro) are seen to be allocated for the gas storage and distribution segments and for the liquefied natural gas (LNG) production.

Investments in natural gas sector in Latin America are seen to account for 8.0 pct of the funds projected to be invested worldwide in the period".