In 2007, Chile was as dependent on imported natural gas from Argentina as Germany is today on natural gas from Russia. But in the face of a sudden supply shock, the Chilean government was able to mitigate the economic damage and lay the foundation for the country’s shift to renewables.
LONDON/SANTIAGO – In mid-2007, while serving as ministers in Chile’s government, we received the kind of telephone call that every German politician and businessperson now dreads. We were told that natural-gas imports from neighboring Argentina, Chile’s only supplier, would be cut off overnight. Like Germany today, Chile was overwhelmingly dependent on imported gas for generating electricity, fueling industrial plants, and heating homes. The shock therefore could have been devastating; but, thanks to a battery of emergency measures, Chile pulled through.
LONDON/SANTIAGO – In mid-2007, while serving as ministers in Chile’s government, we received the kind of telephone call that every German politician and businessperson now dreads. We were told that natural-gas imports from neighboring Argentina, Chile’s only supplier, would be cut off overnight. Like Germany today, Chile was overwhelmingly dependent on imported gas for generating electricity, fueling industrial plants, and heating homes. The shock therefore could have been devastating; but, thanks to a battery of emergency measures, Chile pulled through.