Peter Howard Wertheim
OGJ Correspondent
RIO DE JANEIRO, May 23 -- Brazilian Gas Transport Co. (BGT) has canceled bidding for contracts to expand the 3,150-km Bolivia-Brazil pipeline after Bolivia announced the nationalization of its gas sector.
Jose Zonis, BGT director, said the companies that use the pipeline had all waived their throughput contracts with his company in response to Bolivia's nationalization plan, including Petroleo Brasileiro SA (Petrobras), Repsol YPF SA, and Total SA.
Two other companies that operate in Bolivia—Pan Energy and British Gas—had not canceled their contracts but had asked for a 180-day grace period while they analyzed the situation in Bolivia.
Bolivian President Evo Morales unveiled a plan on May 1 forcing foreign gas producers to sign new operating contracts or leave the country within 180 days (OGJ Online, May 2, 2006).
Zonis said BGT could restart the bidding process only if there were changes in Bolivia.
BGT has paid off all construction costs of the pipeline, which is projected to start making money next year.
