Brazil braces for cuts in natural gas from Bolivia

As a precaution against further political unrest in Bolivia, where Congress on June 9 named Supreme Court President Eduardo Rodriguez to succeed Carlos Menas as president, Brazil’s mines and energy ministry is drafting plans to reduce gas demand.Brazil imports 24 million cu m/day of gas from Bolivia through a contract valid until 2019. This amount represents around 50% of the country’s gas consumption.Brazil’s energy ministry said it will choose where to reduce gas flows until alternatives are found. About 75% of Bolivian gas exported to Brazil goes to Sao Paulo.Analysts said that if gas rationing is required, cuts would be made first at refineries owned by Petroleo Bras...

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