YPFB develops new line of business in the international gas market in the region

The following is a machine translation of a YPFB release

Santa Cruz, Sep 4, 2024 (AN-YPFB).- Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) is developing a new line of business in the international gas market in the region, following the approval and publication of Supreme Decree No. 5206, said Óscar Claros Dulon, manager of Natural Gas Export Contracts for the state oil company.

YPFB Transporte, YPFB Transierra, YPFB Andina (JV Río Grande) and GasTransboliviano make up the Integrated Gas in Transit Transportation System. The gas produced in Argentina will flow through this system to the Brazilian market, under the direction and programming of the aggregation and transportation operations by YPFB.

“In addition to the export flow of gas produced in Bolivia to Sao Paulo, YPFB will add a new line of business: the aggregation and transportation of gas from Argentina to Brazil through the gas pipeline system via the subsidiary and affiliated transportation companies of the state-owned gas and oil company,” said Claros Dulón.

Among the strategic assets of Bolivia and YPFB, the gas pipeline transportation system installed in Bolivia stands out, through which the country currently exports gas to Brazil and Argentina.

“Guaranteeing full transportation capacity for gas produced in Bolivia, YPFB will make available for Gas in Transit operations up to 4 million cubic meters per day of transportation capacity for Argentine gas destined for Brazil, a capacity compatible with the maximum volume of exports by pipeline that Argentina currently has,” said Claros Dulón.

NEW LINE OF BUSINESS AND CURRENCY FOR THE COUNTRY.

In recent months, YPFB has worked hard on the development of this momentous project, which will be fully operational in the fourth quarter of 2024, thanks to the commitment and support of institutions involved in these operations, such as the Ministry of Hydrocarbons and Energy, the Vice Ministry of Tax Policy, the National Hydrocarbons Agency and the National Customs.

With the Gas in Transit operations, from Yacuiba to Mutún or San Matías, according to the conditions of the commercial contracts between sellers and buyers, the Bolivian pipeline system will capture resources from transportation rates and the price of the aggregation service.

PERSPECTIVE.

YPFB has the material, commercial and administrative conditions to develop and expand the new business line of aggregation and transportation of Gas in Transit through Bolivia, an activity that will be joined in the short term by operations of purchase and sale of natural gas in the international market of the region.

Supreme Decree No. 5206, of August 28, 2024, aims to implement international trade agreements at the regional level in the area of energy, as well as to consolidate the optimal management of the gas pipeline transportation system of the Plurinational State of Bolivia. In addition, it lays the foundations for the development of a regional gas transportation and commercial strategy by YPFB, for the benefit of the country.