Cold snap prompts Chile to seek gas deal with old foe Bolivia
As temperatures fall, neighboring Argentina has cut some gas shipments to Chile, causing prices to skyrocket.
from the August 8, 2007 edition
Page 2 of 3
On the surface, this partnership seems like an ideal match. Chile needs natural gas to satisfy internal demands.
Bolivia, which has South America's second-largest natural-gas reserves, also stands to benefit from better ties: The country is seeking more potential gas customers as well as foreign investment to help modernize its gas-industry infrastructure.
But the two countries have a long legacy of diplomatic feuds.
Chile and Bolivia have had icy relations since the War of the Pacific in 1883. At that time, Chile took Bolivia's access to the Pacific Ocean, a loss that soured relations. Diplomatic ties were eventually broken off in 1978 over Bolivia's insistence on regaining access to the sea.
'First step toward reconciliation'
In spite of this sensitive history, relations between the two nations have thawed in the last year. Since Chilean President Michelle Bachelet and her Bolivian counterpart, Evo Morales, assumed their respective positions in 2006, officials from both countries have tried to boost dialogue and reconciliation.
The latest sign of rapprochement came last week, when Chilean Energy Minister Marcelo Tokman and Bolivian Hydrocarbon Minister Carlos Villegas met in Bolivia's capital, La Paz, to discuss energy integration.
The two ministers discussed cooperation on geothermal energy at length. But they decided to put off detailed discussions about gas until a later date, which has not yet been set.
Chilean politicians and officials have spoken out in favor of the renewed dialogue.
"I think that last Monday's meeting was a very important first step toward reconciliation," says Paula Vasconi, an official at Terram, a Chilean think tank that promotes environmental protection and sustainable development.
Still, Ms. Vasconi went on to vocalize Chilean concerns over the talks' most serious sticking point: Bolivia's territorial demands. Chile has tried to keep its energy discussions separate from landlocked Bolivia's desires for sea access, and this could represent a point of contention in future negotiations.
"I think that these talks could lead Chile and Bolivia to establish diplomatic relations once again," says Vasconi. "But it all depends on how Bolivia deals with the sea access issue. If things with that issue do not get too complicated, then there could be very positive results."
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