Friday, March 03, 2006

Bolivia, Mexico: PEMEX and Bolivia, LNG to be sold in USA?

Interesting note, Mexico's Energy Secretary and the head of PEMEX, Mexico's national oil and gas company, are in Bolivia right now, talking with the Oil and Gas Ministry to see if they can reach agreement on some joint ventures, as this article states.

One of the ones discussed would be the processing of gas into Liquid Natural Gas, for sale to the U.S. Remember that a prior project of sale to gas to the US, caused riots that brought down Goni, because it involved a pipeline through Chile, as well as a sale to the U.S.

Evo certainly has the political capital to try this again, right now. Having a radical reputation also helps bargaining positions, when negotiating big deals with foreign entities. If he can score a good deal for Bolivia, it would be a real coup (no pun intended). If he is serious about "industrialization", he would find the way to get some financing so Bolivia could get the capacity to produce LNG on its soil. Trinidad and Tobago is already becoming a big LNG producer, Bolivia needs to get on board.