Brazil to announce emergency gas supply measures

Thu Sep 11, 2008 10:58am EDT
BRASILIA, Sept 11 (Reuters) - Brazil will announce emergency measures later on Thursday to deal with a supply shortage of Bolivian gas after protests in the neighboring country damaged a pipeline, the energy ministry said.
Bolivia said on Thursday that half of its natural gas exports to Brazil were cut after incidents at a pipeline.
Brazilian Energy and Mines Minister Edson Lobao called a task force to study the situation and will announce the measures at a news conference at 4 p.m. local time (1900 GMT), a spokesman said.
Brazil relies heavily on Bolivian gas imports, especially industries in the state of Sao Paulo.
Brazil could ration gas consumption, feed thermoelectric plants with fuel oil instead of gas, or tap the gas that state oil company Petrobras (PBR.N: Quote, Profile, Research, Stock Buzz)(PETR4.SA: Quote, Profile, Research, Stock Buzz) re-injects into oil wells, Lobao has said.
Opposition to leftist Bolivian President Evo Morales has intensified anti-government protests in eastern Bolivia in recent days. On Wednesday, protesters damaged a pipeline, cutting one-tenth of the country's natural gas exports to Brazil. (Reporting by Denise Luna; Writing by Raymond Colitt; editing by Jim Marshall)