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Uruguay's Housing, Land Planning & Environment Ministry (MVOTMA) has recommended an environment action plan for the Cruz del Sur gas pipeline between southern Uruguay and Argentina to reduce the environmental impact of the project. The plan entails the recovery of natural areas affected by the pipeline, and if this is not possible the implementation of compensatory measures for sectors such as agriculture. The project could potentially produce dune erosion and affect agriculture, according to a MVOTMA report. British Gas International, Pan American Energy and Uruguay's state oil company Ancap signed a contract in March to build and operate the US$135mn, 215km Cruz del Sur gas pipeline. It will connect Buenos Aires and Montevideo and could later extend to Porto Alegre in southern Brazil's Rio Grande do Sul State, and could eventually connect to the Bolivia-Brazil bi-national pipeline.