Chile's Edelnor Studies Legal Options as Argentina Cuts Gas
By James Attwood
Aug. 10 (Bloomberg) -- Empresa Electrica del Norte Grande SA, which sells power to mines in northern Chile, is studying its legal and commercial options after Argentine authorities suspended natural-gas exports of three companies.
The effect of the halt of Argentine gas shipments on Edelnor, as the company is known, will depend on how it affects spot market prices, the Santiago-based company said in a regulatory filing today.
Argentina's energy department halted exports from Tecpetrol SA, Mobil Argentina SA and Compania General de Combustibles SA on the grounds they had issued incorrect information about their reserves, Edelnor said. The suspension will last for two years or until the companies comply with regulations.
Electricity prices in Chile have risen to records as producers are forced to generate power using more expensive diesel because Argentine gas restrictions and lower-than-normal rainfall in the country restrict hydro and thermal production.
Too bad Chile never invested in a supply of electricity that they controlled - nuclear power. France did it and no one can hold her hostage.
And note the Argentine reason for cutting off the gas - bad reserves data. Can we say, Peak Gas?