Petrobras has signed an addendum to the contract through which it purchases natural gas from Bolivia's state-owned Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), with plans to maintain the current volume at a maximum of 20 million cu m/day.
The addendum alters the profile of the total gas volume delivered by Petrobras "based on the availability of gas for export by YPFB," Petrobras said in a press release Dec. 15.
Maintenance of the maximum volume will occur, but with "greater flexibility in the firm commitments of delivery and receipt according to seasonality and the availability of supply," the company said.
Petrobras, controlled by the Brazilian government but with shares traded on the São Paulo, New York, and Madrid stock exchanges, affirmed that the addendum ensures "a contractually balanced supply and the possibility for YPFB to sell additional gas to other Brazilian importers" and provides "greater security and predictability to the gas supply in the market served by Petrobras." No information was given regarding possible increases or decreases in the price of gas.
Bolivia's gas availability
Bolivia's gas production is about 33.5 million cu m/day. Domestic consumption stands at 15 million cu m/day. Gas exports to Argentina, which will cease next year, reached 20 million cu m/day (currently exporting 6 million cu m/day) and to Brazil, 20 million cu m/day.
Early termination of the firm contract with Argentina, in July 2024, was a decision taken by the Bolivian government led by Luis Arce, as the contract was set to expire in 2026. Budgetary constraints and development of Argentina’s Neuquén basin facilitated an agreement, which could, however, involve some compensation. Meantime, negotiations are under way with Bolivia for the use of its infrastructure to transport gas from Vaca Muerta to Brazil.
