Bolivia’s Gas Lower than LNG, Vaca Muerta Shale: Sánchez Says

Instant Max AI

(Energy Analytics Institute, Jared Yamin, 12.Oct.2018) — Bolivian natural gas is more competitive than liquefied natural gas (LNG) and gas from Argentina’s Vaca Muerta shale formation, announced Bolivia’s Hydrocarbon Minister Luis Alberto Sánchez.

The minister stressed that Bolivian gas, priced at $7/MMbtu, was much cheaper than Argentine gas.

Argentina’s LNG imports cost around $10.50/MMbtu, while the production cost in Vaca Muerta is around $7.50/MMbtu, so “the most competitive gas for the Argentine market is undoubtedly Bolivian gas,” reported the daily newspaper El Diario, citing Sánchez.

Sánchez warned that if Argentina decides to pay a lower price (reduces the price), it must pay the Take or Pay (contract modality), which establishes a fine be paid for any energy not withdrawn, plus interest.

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Energy Analytics Institute (EAI): #LatAmNRG

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