Bolivia Expects Increase In Gas Exports To Argentina

(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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Energy Analytics Institute (EAI), formerly LatinPetroleum.com, is a Houston-established private organization with a satellite presence in Calgary, Mexico City and Venezuela where it operates under Editores LatinPetroleum SA. Since 1999, EAI has been a leader in energy news coverage of Latin America in particular. Coverage, run out of Latin America, now spans the world and encompasses nearly all energy and energy-related sectors.

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