South American energy integration can be divided in two distinct phases: the first phase, from 1970s until the late 1980s, in which the American participation is more vigorous; the second phase starting from the early 1990s having infrastructure reforms and privatization as milestones.
Since then, many attempts have taken form and some interconnection opportunities have been exploited. Many agreements and initiatives have gained form. Colossal joint energy generation projects and linking gas pipelines such as the Yacyreta hydroelectric dam co-owned by Argentina and Paraguay, the Argentinean-Uruguayan Gasoducto Cruz del Sur (Southern Cross Pipeline) and the elephant Itaipu hydroelectric dam—a Brazil-Paraguay initiative, epitomize the interest for such integration however most initiatives are bilateral and do not contemplate the region as a cohesive group.
Despite the eminence of these needs, political turmoil, economic uncertainty and rogue unstable regimes bring instability to the region and energy disintegration seems to be as possible as integration. As parties are involved in pet peeves, great opportunities are squandered—i.e. Chile and Argentina share some 3,000km of border, have one international oil pipeline, five gas pipelines but surprisingly no power interconnection. [1]
