South American Gas Pipeline
The cost of building a natural gas pipeline spanning South America would exceed the most recent estimate of US$25 billion (euro20.7 billion), the chief executive of Brazil's state-owned petroleum company said in an interview published last week.
In December, Argentina, Brazil and Venezuela began studying the construction of the 9,000-kilometer (5,600-mile) pipeline that would link Venezuela's vast natural gas reserves through Brazil to Argentina, with branches extending to Bolivia, Paraguay and Uruguay.
Proposed by Venezuelan President Hugo Chavez to help make South America energy-independent, the pipeline was originally projected to cost US$10 billion (euro8.3 billion) to US$20 billion (euro16.5 billion).
But analysts said the price tag could be twice that estimate, noting that the project presents a huge technological challenge since it would cut through the dense, muddy Amazon jungle.
Environmentalists are already opposing the plan.
Chavez will meet next month with country leaders to discuss the proposal in a summit tentatively scheduled to be held in Paraguay.
Construction could take five to seven years. Chavez wants it to be built and operated by state-owned oil companies from the region to reduce US economic influence on the continent.
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in Chavez, Natural Gas, South America
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