Argentina, Bolivia, Brazil fail to find gas solution

By Walter Bianchi

BUENOS AIRES, Feb 23 (Reuters) - The presidents of Argentina, Bolivia and Brazil failed to reach a deal on Saturday to redistribute Bolivia's diminished natural gas exports and give Argentina the larger share it seeks.

Energy ministers will form a crisis group and meet again in ten days to try to reach a solution after Argentina was not able to persuade Brazil to give up some of its share of Bolivia's natural gas, Argentine Foreign Minister Jorge Taiana told reporters.

Presidents Cristina Fernandez of Argentina, Evo Morales of Bolivia and Luiz Inacio Lula da Silva of Brazil met at the presidential residence in a Buenos Aires suburb to try to reapportion the natural gas exports.

"In 10 days the energy ministers will meet in La Paz to seek a solution," Jose Sergio Gabrielli, president of Brazilian state oil firm Petrobras, told reporters after the meeting.

"Argentina asked for 1 million cubic meters of natural gas per day (of those Brazil consumes," but he said Brazil is only willing to sell electric power to Argentina during the winter months.

Bolivia, which also has growing energy demands, has been unable to keep up with promised levels of natural gas exports to its two neighbors, the largest economies in South America.

Argentina and Brazil both produce oil and gas, but not enough for their power grids and factories during peak periods. Bolivian natural gas is a key energy source for Sao Paulo, the hub of Brazil's industrial production.

Galloping economic growth on the back of high prices for raw materials such as Argentine and Brazilian soy, Chilean copper and Bolivian natural gas, have made looming energy shortages a concern in much of South America.