Bolivia wants a better gas market with Brazil – MercoPress

Bolivia wants a better gas market with Brazil

Bolivia expects to receive an additional $ 100 million for the new agreement with Argentina

Bolivian Minister for Hydrocarbons and Energy Franklin Molina said the agreement with Brazil on the sale of gas for domestic use, signed during the administration of the Janine Áñez dispute, was detrimental to his country and that he will seek a new agreement now. , more favorable deal.

Molina made the remarks after Brazilian President Jair Bolsonaro first decided to divert 30% of the gas destined for the largest country in South America to Argentina, where the government has much more in common. President Alberto Fernández with Bolivian President Luis Arce Catacora and also with the former president. Evo Morales.

“Everything is steered,” Bolsonaro complained, arguing that angry Brazilians who would have to pay higher gas bills would turn to “you know who he is” (left-wing presidential candidate and former head of state Luiz Inácio Lula Da Silva) and said that his own state oil company, Petrobras, was behind the move.

Molina stated that the price agreed in the appendix signed under the Áñez mandate was not favorable to Bolivia and was doing economic damage to the state – owned Yacimientos Petroliferos Fiscales Bolivianos (YPFB).

“It is incumbent on him to renegotiate the terms of this appendix, because the signatory was a de facto government that did not care for the interests of the State (…) Bolivia is looking for a better price. for its natural gas, better. better conditions and market, “Molina said in a statement.

The March 2020 appendix sought to grant Bolivia a revenue of at least $ 4,000 million until 2026 for daily shipments of between 14 and 20 million cubic meters. Molina also explained that YPFB president Armin Dorgathen was in Brazil looking for “better conditions.”

“The response was not as expected, and in this case we focused on the contract, where one of its clauses states that if one of the parties is not happy with the price, that party can renegotiate to seek, “he said. .Mill.

The Minister also noted that private companies in Brazil are willing to buy Bolivian gas at prices between 15 and 18 dollars per million BTU, and that, according to the Áñez agreement, Brazil would pay between 6 and 7 dollars per million. per million BTU.

Molina also stressed that it was another “mistake” to assume that YPFB covers shipping costs to the point of delivery, which was previously covered by Petrobras and showed annual losses of about $ 70 million for a Bolivian state – owned company.

Natural gas is Bolivia’s main export product and has been a pillar of the Bolivian economy for the past two decades, with Argentina and Brazil being its main markets. Production and revenues generated from the sale of hydrocarbons have declined in recent years due to price fluctuations in foreign markets.

Petrobras reported last week that the amount of gas coming from Bolivia has been declining since May. “This 30% reduction was unplanned and suggests the need to import additional quantities of liquefied natural gas to meet Petrobras’ supply needs.”

Bolivia and Argentina have signed a new agreement to buy and sell natural gas in larger quantities and Bolivia expects to receive an additional $ 100 million.