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2006-06-30
Chile said on Wednesday natural gas and oil fields in Magallanes in the nation s south were commercially viable and could help the country ease its current energy deficit. Chile, which consumes some 775 million cubic feet (22 million cubic meters) of natural gas a day, is exploring for its own resources as it tries to reduce dependence on natural gas from Argentina. It depends on imports for almost all of its fuel needs.

"This discovery of gas and oil in Magallanes is great news for Chile, because it will contribute to our energy autonomy," said Enrique Davila, the chief executive of Chile s state oil company ENAP. After drilling in two of three reservoirs at Lago Mercedes 2, Tierra del Fuego, ENAP confirmed the presence of continuous flows of gas and oil.

Based on this, and the results from samples taken at Lake Mercedes 3, ENAP said it will be able to determine the field s total reserves. ENAP confirmed the discovery of natural gas fields in Magallanes in April, after three years of geological exploration. Argentina began cutting shipments to Chile two years ago in order to supply its own surging domestic demand.

In the past, disputes with neighboring Peru and Bolivia have stymied efforts to negotiate with those two countries over natural gas supplies. Last week, Peru s President-elect Alan Garcia said his country would be open to exporting natural gas to Chile if it can boost its reserves.

Among other initiatives, Chile has signed an agreement with British gas and oil company BG Group to build and supply a regasification plant for liquid natural gas that would be shipped in from other countries.
(a href=http://www.planetark.org/dailynewsstory.cfm/newsid/37048/story.htm target="blank">Planet Ark, 29/06/2006)

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