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Latin America: Falling Brazilian gas demand hits Bolivia

THE GLOBAL economic slowdown and Brazil's growing domestic gas production have reduced demand for Bolivian imports. This has forced the impoverished Andean nation to consider exports to other markets. The need for markets is so great that the government has even considered exporting gas to Chile, despite a long-standing dispute with its neighbour over territory seized in a 19th century war that left the Andean nation landlocked. Bolivian gas production has held steady at around 40m cubic metres a day (cm/d) in recent years (see Figure 1). The government would like to increase output, but slack demand from its main customer, Brazil, and Argentina's failure to expand pipeline capacity to brin

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