Private Enterprise and Financial Markets > Infrastructure and Financial Markets > Infrastructure
Liberalization of the Gas Sector in Latin America: The Experience of Three Countries
By Paulina Beato, Carmen Fuente (06/00, IFM-124, En, Es)
Beginning in the early 1990s, renewed economic growth, market liberalization and environmental concerns led to an increase in the demand for natural gas. While the region is self-sufficient in this fuel, significant increases in infrastructure investments were necessary to meet the new demand. To this end, governments promoted regulatory reforms to move from a monopolistic model to a competitive one, paving the way for private participation in the sector.
To achieve this goal, reforms had to be structured to meet the needs of each segment of the energy sector; namely, production, transportation and distribution. Privatization, free entry and deregulation of the wellhead price are the core reforms necessary to bring competition to the production of natural gas. Free entry, the full separation of transportation and supply and freedom to sell transport rights are essential to increased competition in the transportation segment. Open access to the distribution network and regulations that prevent price discrimination are vital for introducing retail competition.
In keeping with the Department's mission of gathering and disseminating information, this best practices study examines the scope, outcomes and shortcomings of the reforms, using the experiences of Argentina, Colombia and Mexico as examples. Research of this type is vital to ensuring that the experiences gained and the lessons learned can be effectively applied to the implementation of future projects.
To obtain a hard copy of this publication, please submit your request to:
IFM Publications
Infrastructure and Financial Markets Division
Inter-American Development Bank
1300 New York Avenue, N.W.
Washington, D.C. 20577
Mail Stop W-0508
E-mail: sds/ifm@iadb.org
Fax: 202-623-2157
Last updated: 01/29/07
