For winter 2022, the Ministry of Energy estimated that a national gas production will be needed from May to September, which will represent 73% of the demand with 17,995 MMm3, 2,142 MMm3 will have to be imported from Bolivia, which will cover 9% of the demand, and It will be necessary to import 4,406 MMm3 equivalent of LNG to cover the remaining 18%.
Given the new panorama of oil with a barrel of US$90, the fuel for the energy transition became more expensive in the world and the national government is now revising its calculations to launch a new international tender for LNG supply, without regretting a greater outlay of dollars for energy issues.
The projection is that in 2022 gas imports from Bolivia -which the president louis arce plans to adjust to u$s7.5 per million average BTU-, of LNG and liquid fuels for the power generation park will climb to $5.5 billion, a number that sends shivers down the spine of the Central Bank. The incentive is that while in the North prices rise today due to the cold and a greater demand for LNG, when winter arrives here world consumption decreases and prices relax.
In 2020, Argentina imported at a rate of 21 MMm3/dbut last year that demand fell to 14 MMm3/d, by the decline in Bolivian gas production. The new contract (sixth addendum) between the Argentine Energy Integration (IEASA) and Bolivian Fiscal Oilfields (YPFB) was to be signed on December 31 past, but due to lack of agreement the negotiations will remain open until April 30th. For the time being, the commitment assumed is to deliver 7.5 MMm3/d of gas, but in winter that figure rises to at least 12 MMm3/d.
With the escalation of LNG prices in the world (US$25 per MmBTU), the Government seeks to supply Bolivian gas at a lower cost. In the removed addendum it was agreed for 2021 u$s5.10 in winter and u$s4.82 the rest of the year. But nevertheless, from the neighboring country they have already warned that the initial offer of US$5 per million average BTU it doesn’t go anymore. Now, after the new discovery there is talk of around US$7.5.
What is the natural gas megafield like?
The Margarita (in Tarija) and Huacaya (Chuquisaca) fields form part of one of the main gas reservoirs in Bolivia, where Repsol and other foreign companies operate under concessions from the Bolivian State, through YPFB.
“Last year we started an exploration in the Margarita Huacaya well (…), it is giving us good results, brothers, we are finding gas reserves in this well that we explored in our management in the order of 300 to 350 billion cubic feet. “said Luis Arce in the Andean city of Oruro.
YPFB Carrasco Gas Plant Bolivia.jpg
The Bolivian state oil company YPFB said in a statement that “the production of this well will generate income for the State of more than 260 million dollars/year.”
“YPFB and Repsol make their best efforts to make this production available to the markets in the shortest possible time”, said the president of the Bolivian company, Armin Dorgathen.
For years, hydrocarbons were Bolivia’s main export sector, but recently it has been surpassed by mining (mainly gold and zinc). In 2021, Bolivian exports totaled US$10,936 million, 59% more than the previous year. Of this sum, US$2,343 million correspond to hydrocarbons and US$5,880 million to minerals, according to the Bolivian Institute of Foreign Trade.
Source: Ambito
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