Visiting Venezuelan President Hugo Chavez said on Thursday that he was confident the tension triggered by Bolivia's nationalization of its fuel industry would be overcome.

On the sidelines of an inter-governmental conference in Puerto Iguazu, Argentina, Chavez said he believed that the tension was being fueled "by the North," a reference to the United States, to "impede Latin American unity."

Chavez met with Bolivia's President Evo Morales, Argentine President Nestor Kirchner and and Brazil's Luiz Inacio Lula da Silva in Puerto Iguazu on Thursday to discuss regional energy security.

After their meeting, the presidents promised to respect Bolivia's decision to nationalize its natural gas sector and agreed to negotiate future gas prices.

Morales told reporters that Bolivia will continue supply gas to Brazil and Argentina, and Chavez gave his backing for the "sovereign" decision of Bolivia to recover its petroleum and gas assets from foreign companies.

Bolivia's nationalization decision hits 20 multinational companies in Bolivia, with Brazil's state-owned company Petroleos Brasileiros and Spanish-Argentine private company Repsol-YPF being the most affected.

Bolivia sells Argentina 5 million cubic meters of gas daily, and supplies the city of Sao Paulo some 60 percent of its gas needs.

Source: Xinhua