Venezuela and Bolivia to Collaborate on Natural Gas Plant

Mérida, February 26th 2009 (Venezuelanalysis.com) — Venezuela will assist Bolivia in the construction of a liquid gas separation plant in the Chaco Forest region of Bolivia’s southeastern Tarija province, Bolivian President Evo Morales announced Tuesday.

“We will have a big meeting with experts and technicians from Venezuela to seriously discuss the liquid gas separation plant in Chaco,” said Morales, broadcasting from a community radio station.

The meeting between officials from the Venezuelan state oil company, PDVSA, and Bolivia’s YPFB was scheduled for Wednesday. The new gas plant is part of Bolivia’s planned industrialization of its domestic hydrocarbon industry, which may include petro-chemical production, according to Morales. 

Bolivia and Venezuela created a mixed enterprise called Petroandina last year to develop oil and natural gas production in Bolivia. The company is part of an economic cooperation initiative called the Bolivarian Alternative for the Americas (ALBA), which proposes “People’s Trade Agreements” based on the principles of solidarity and mutual benefit as an alternative to free trade pushed by the United States. ALBA was initiated by Venezuela and Cuba, and other member countries now include Bolivia, Nicaragua, Honduras, and Dominica, with Ecuador as an associate.

The vast, mineral-rich Chaco Forest also extends into northern Argentina, northwestern Paraguay, and southern Brazil.