Publication: International Gas Trade : The Bolivia-Brazil Gas Pipeline
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1998-05
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2012-08-13
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The Bolivia-Brazil natural gas pipeline, which will transport natural gas more than 3,000 kilometers, will cost US$2.1 billion to construct. Despite the substantial benefits for both Bolivia and Brazil and the involvement of reputable private partners, the perceived risks and complexities of this large project made financing it a major challenge. The pipeline will link supply in one country to a potential market is another. Neither of these countries has a tradition of independent regulation or economic pricing of fuels. And the pipeline will be the first major gas infrastructure project involving the private sector in Brazil, where the natural gas market is underdeveloped and the gas distribution infrastructure still very limited. This Note explains the historical factors that shaped the project, how the financing package came together, and the role the pipeline will play in liberalizing the Brazilian hydrocarbon sector.
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“Law, Peter L.; de Franco, Nelson. 1998. International Gas Trade : The Bolivia-Brazil Gas Pipeline. Viewpoint: Public Policy for the Private Sector; Note No. 144. © World Bank. http://hdl.handle.net/10986/11546 License: CC BY 3.0 IGO.”
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