| The presidents of Colombia, Venezuela, and Ecuador | | | | lack of natural gas. |
| announced Friday Oct. 12th that new | | | | The repeated cuts have strained relations between |
| Ballenas-Maraciabo international pipeline will be | | | | Santiago and Buenos Aires and caused the highest |
| extended across Colombia to create the first | | | | number of dangerously smoggy days in the capital city |
| transoceanic pipeline on the continent. | | | | of Santiago in seven years. The cuts are also |
| Speaking at the inauguration Friday, President Chavez | | | | contributing to increased inflation in Chile, expected to |
| said that plans were ready to connect the pipeline with | | | | reach 6.4 percent this year. |
| Central America and the Andean countries of | | | | Although Argentina's president Nestor Kirchner refuses |
| Ecuador, Peru, and Bolivia. The announcement names | | | | to admit that government price fixes have discouraged |
| the city of Popayán in southwestern Colombia | | | | much needed investment and development in the |
| as the pipeline's next destination where it will then be | | | | energy sector, leading to decreased production, |
| extended south to the Ecuadorian border city of | | | | analysts say that his policies are responsible for |
| Tulcán, in the highlands of Ecuador's central | | | | Argentina's soaring inflation. While official government |
| valley. | | | | figures predict that inflation will grow between 7 and 11 |
| President Chavez also announced plans to connect | | | | percent, The Economist puts the figure at 12.6 percent |
| the pipeline with Panama and from there head north | | | | and the New York Times quoted private economists |
| into Central America, expanding the Union of South | | | | who predict national inflation will be closer to 20 |
| American Nation's (Unasur) plans to create a regional | | | | percent. |
| energy grid to supply the continents increasing energy | | | | All of this is occurring in the context of a continental |
| needs. | | | | push for greater integration launched by the 12 |
| Energy shortages are already affecting the southern | | | | presidents of South American nations in 2000. The |
| cone where natural gas shortages in Argentina have | | | | success of the movement so far has been mixed with |
| led to supply cuts in gas exports to Chile. According to | | | | the northern half of the continent moving forward on |
| figures published by the New York Times, Argentina | | | | projects like the Ballenas-Maracaibo pipeline while the |
| has cut over 90 percent of its supplies to Chile 79 | | | | southern cone remains bogged down in conflicts like |
| times this past winter forcing power plants and | | | | that between Argentina and Chile. |
| factories to switch to diesel and fuel oil to make up for | | | | |