Bolivia aims for new opportunities in immediate markets to maximize gas exports

The following is a machine translation of a Ministry of Hydrocarbons and Energy release

Bolivia is targeting new markets to sell gas at the best price, including private and state-owned companies. There are marketing opportunities in immediate markets to maintain the level of income, said the Minister of Hydrocarbons and Energy, Alejandro Gallardo.

Currently, Bolivia continues to export gas to Brazil and recently suspended the sale of this energy source to Argentina, as provided for in the latest addendum signed by the Bolivian government, through YPFB, with the company Energía Argentina Sociedad Anónima (IEASA).

The Minister explained that the current dynamics of natural gas are characterized by a short-term approach, which means that long-term contracts are becoming less common. The price of natural gas is destined to have its own market, detached from the price of oil and fluctuating according to short-term supply and demand, he added.

“In autumn and winter, gas demand in Brazil is highest, and then it decreases,” said the authority, who highlighted the importance of seasonality in Bolivia’s commercial strategy. The country must adapt to this new reality, where contracts can last from 3 to 6 months and even up to a year.

He also stressed that the key to maintaining revenues is to ensure that production supports demand and to take advantage of existing infrastructure. “We are entering a more competitive and dynamic market, the challenges are great and there are new opportunities,” Gallardo added.

He also noted that natural gas emerged as a crucial vector in the global energy transaction, and Bolivia is looking for markets with favorable conditions, especially in Brazil, where it is necessary to increase production through the development of 56 projects of the Upstream Reactivation Program (PRU 2021-2025).

To achieve this, the Government is working to improve incentives for the implementation of new projects, in a joint effort with the business sector. With these initiatives, Bolivia hopes not only to maintain its export earnings, but also to diversify its offering and adapt to the demands of the current market.

It is important to clarify that the main reason for the suspension of natural gas sales to Argentina is due to the discovery and exploitation of the Vaca Muerta field, Gallardo said. This discovery not only significantly increased gas production in the neighboring country, but also reduced its dependence on imports, including those from Bolivia, he added.