Bolivia Strikes Gas Deal Russian Giant In Brazil

(Reuters, 11.Jul.2019) — Bolivia’s state energy firm has sealed a deal to supply gas to Russian fertilizer giant Acron’s plants in Brazil, the two sides said on Thursday, opening up a potentially important new market for the landlocked South American country.

Bolivian state-owned YPFB agreed the sale of 2.2 million cubic meters of natural gas per day to the Russian firm for a 20-year period from 2023. “Today we consolidated a new market for Bolivian gas,” said the Bolivian hydrocarbons minister Luis Alberto Sánchez.

The government also agreed to establish with Acron a company for the sale of urea in Brazil. Acron is one of the biggest fertilizer makers in the world and supplies urea to Brazilian farmers. YPFB will also get a 12% stake in the Russian company’s Tres Lagunas plant, with the option to raise that to 30%.

The Bolivian minister also said YPFB and Russia’s Gazprom had completed negotiation of a contract for the exploration and exploitation of the Vitiacua area, a reservoir of natural gas with recoverable resources estimated at 2.13 trillion cubic feet (TCF).

According to the official, that project would require an investment of some $1.1 billion, and the project could produce an estimated 12 million cubic meters per day of gas by 2028.

Reporting by Danny Ramos; writing by Adam Jourdan, editing by G Crosse

***

ENERGY ANALYTICS INSTITUTE (EAI) https://energy-analytics-institute.org

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.

You May Also Like

More From Author

+ There are no comments

Add yours