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03/03/2006:

"South American Gas Pipeline Deemed Costly"

WASHINGTON (AP) - A proposed pipeline that would provide Venezuelan natural gas to South America may never materialize because of financing and other problems, an Energy Department official said Thursday.

The comments by assistant energy secretary Karen A. Harbert came as officials from Venezuela, Brazil and Argentina met in Caracas, Venezuela's capital, to lay plans for the project.

Testifying at a House subcommittee hearing, Harbert said the pipeline would take years to complete ``if it ever comes to fruition.''

``There are tremendous technical challenges,'' she said. ``There are tremendous environmental challenges. But most importantly, there are tremendous financial feasibility challenges.''

The same issues were being discussed at the Caracas meeting. Much of the project is expected to be financed from Venezuelan oil revenues.

...She expressed doubt that Venezuela will be able to carry out its agenda for constructing refineries and tankers and producing natural gas because of lack of financing.

The problem, Harbert said, stems from ``the lack of expertise and increasing restrictions on foreign investment in the oil sector.''
guardian.co.uk

In other words, they'll make sure it doesn't get built.