ASUNCION, Oct. 3, 2000 (BNamericas.com)—Bolivian gas distribution company Compania Nacional de Gas (CNG) is negotiating the final details with Paraguay’s state electricity company Ande for the construction of a natural gas pipeline between southern Bolivia and Paraguay’s capital, Asuncion, and which would supply a 600 MW thermoelectric power plant in the city, CNG president Jorge Calderon told BNamericas.com.

Construction of the pipeline, which should cost some US$140mn, will depend on the approval of the thermoelectric project in Asuncion, which would cover the city’s energy demands and allow Paraguay to sell Brazil all of its capacity at the Itaipu and Yacyreta hydroelectric power plants.

CNG’s participation will be limited to building and operating the pipeline, and the company would have no direct relation with the thermoelectric project.

Paraguayan news reports claim Ande would favor the project, as it would allow the company to save capital that would have to be invested in power transmission to Asuncion, where most of Paraguay’s energy consumption is concentrated.

CNG is negotiating the final details with the government and Ande to determine the companies that will buy the gas and generate the power. “We should have results in the short term,” Calderon said.

The financing for the pipeline will be through a bond issue by CNG and by equity investment from project partners, Calderon added.

Business News Americas (BNamericas.com)

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