(Energy Analytics Institute, Ian Silverman, 5.Jun.2019) — A new addendum to an existing contract between Bolivia and Argentina will lead to a price increase for exports of natural gas from the former to the latter by between 15% to 20% in winter, Bolivia’s Information Agency (ABI) reported 5 June, citing Bolivia’s Hydrocarbons Minister Luis Alberto Sanchez.
During winter Argentina is expected to request up to 20 million cubic meters per day (MMcm/d) of gas, automatically triggering a rise in the cost of national energy, which is temporarily indexed to the price of liquefied natural gas (LNG), Sanchez said. The higher demand is expected to last until September, he added.
Bolivian gas exports will include a 15% price increase when the nominations exceed 10 MMcm/d; thus, boosting the sales cost to $7.18/MMbtu in summer from $6.24/MMbtu, the media reported. However, in winter, the sales cost will increase to $10.30/MMbtu from $6.24/MMbtu.
The price is indexed to LNG plus the cost of regasification, the minister said.
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