Bolivia: Minister of Hydrocarbons and Energies highlights progress in industrialization and guarantees energy and food security in the country

This MHE release was published using machine translation.

UCOM-MHE-02-23-2023.- At the Public Accountability Hearing - Final 2022, the Minister of Hydrocarbons and Energy, Franklin Molina Ortiz, showed this Thursday in La Paz the progress and results of the industrialization process with import substitution in the hydrocarbon sector and guaranteed energy and food security in the country.

The goals achieved during the past administration are aimed at promoting income generation through industrialization, strengthening hydrocarbon exploration and exploitation management, encouraging the diversification of the energy matrix, within the framework of the universalization of services and the food sovereignty.

Industrialization

At the event, Molina highlighted the industrialization process. In this sense, he said that to date the production capacity of the Urea and Ammonia Plant (PAU) is at 100%. This increase in its production allowed the income from the commercialization of urea to rise to more than $us228 million during the past administration.

Currently, studies are being carried out to install the second ammonia and urea plant, which is expected to cost US$1,290 million, which will cover the growing domestic demand for the fertilizer and increase export revenues for the product.

Regarding the progress in the implementation of plants for the production of biofuels, the authority pointed out that the Biodiesel Plant 1 project is already underway, “which will require an investment of US$387 million. This plant will reduce the importation of this product and will generate a cleaner and more environmentally friendly fuel. It will also decrease dependence on crude oil, using vegetable oils as raw material”.

Regarding the petrochemical industry, Molina said that in the 2022 administration, the contract was signed for the construction of the Cochabamba Granulated Fertilizer Production Plant, also called the NPK plant, between the Bolivian Hydrocarbons Industrialization Company (EBIH) and the construction company Sur Energy SRL.

This plant will have a production capacity of 60,000 metric tons (MT) per year, will strengthen the national agricultural sector, reduce production costs, prevent currency flight and guarantee food sovereignty.

Oil income and investments

In his presentation, the minister indicated that the oil income obtained from the exploitation of hydrocarbons reached $2.97 billion in 2022, which represents a growth of 75% compared to the 2021 management.

Regarding investments in the oil sector, the authority's report shows that in the same period the resources executed reached $us 399.83 million in the activities of exploration, exploitation, distribution, transportation, refining, plants and industrialization, commercialization and storage.

exploration and exploitation

At the public hearing, Molina also presented the progress status of upstream activities (exploration and exploitation) and a detail of the exploratory and stratigraphic wells executed in the past management (Mayaya Centro X1 IE well; Yope X1 well; Yarará X2 well ; Chané X1 well; Chané X1 well; Iñau X3D well; Yapucaiti X1 well).

In the area of oil exploitation projects, which is part of the actions to strengthen energy security, the implementation of production facilities in the YRA X1 well stands out; the reactivation of the mature fields and the Bermejo field.

Likewise, Molina also referred to the rules issued to encourage new investments that increase the number of reserved areas in favor of YPFB and regulate commercial discovery and the declaration of commerciality for YPFB operator.

Domestic gas and GNV

Residential gas connections are considered one of the projects with the greatest social impact that the government is facing through the state oil company. In this sense, the Minister of Hydrocarbons and Energy reported that last year internal installations reached 50,698.

Another notable aspect of the accountability report refers to conversions to natural gas for vehicles (NGV) which, in the 2022 administration, reached 15,487 conversions of vehicles with third and fifth generation kits which, in terms of impact, contribute to the change of the energy matrix and the reduction of CO2 emissions. The report also reports 31,811 cylinder requalifications last year.

Transport and storage

Regarding the transportation of hydrocarbons, the minister highlighted the expansion of the Tarabuco - Sucre (GTS) gas pipeline, the expansion of the Taquiperenda - Cochabamba (GTC) gas pipeline, the expansion of the Sucre - Potosí (GSP) gas pipeline phase II and the Colpa Compression Station. He also referred to the transportation of liquid hydrocarbons imported from the south, transportation of liquid hydrocarbons imported from the West, renewal of pumping units (PCS).

In the storage activity, Molina indicated the start of operations of the project and the increase in storage capacity (ICA) at the Palmasola 1 Plant, located in Santa Cruz de la Sierra.

Likewise, an anhydrous ethanol reception, storage and dispatch system will be implemented in plants (Oruro, Puerto Villarroel and Trinidad). In this area of work, the authority mentioned the implementation of the terminal control system - online mixing system (in Cochabamba, Santa Cruz and La Paz) and the implementation of the reception measurement system, in plants (Camiri, Potosí, La Paz, Villamontes).