YPFB will supply 700,000 cubic meters of gas per day to the Mutún Steel Complex

The following is a machine translation of a YPFB release

Starting in January 2025, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) will supply a volume of 700,000 cubic meters ( ^m3 ) of natural gas per day for the operation of the Mutún Steel Complex. Initially, starting in August of this year, the state oil company will provide a volume destined for the execution of tests (pre-commissioning and commissioning).

“YPFB will provide the natural gas that will feed this plant, both for electricity generation and for industrial processes, after many years in which the development of Mutún was still a dream. We will contribute with energy to make this project a reality,” said Óscar Claros Dulón, manager of Natural Gas Export Contracts for the state oil company.

The natural gas purchase and sale contract signed between YPFB and Empresa Siderúrgica del Mutún (ESM) on July 25, 2024, will guarantee a firm supply of gas to the steel complex for steel production, starting with this year.

FIRM GAS SUPPLY

The firm supply will enable the power generation plant to start up. The steel complex is then expected to be connected to the National Interconnected System.

This important agreement between YPFB and ESM guarantees the production of lightweight non-flat rolled products and the operation of the production chain for obtaining corrugated bars and wire rod that the Mutún Steel Complex will produce for the national market.

Due to its strategic characteristics and volume, the gas supply contract is part of the group of most important contracts of YPFB in the domestic market. Within the framework of economic development policies and current regulations, YPFB is part of the industrialization process in which the country and its state-owned companies are immersed.

GAS TRANSPORTATION

Likewise, YPFB signed with its subsidiary Gas TransBoliviano SA, the contractual instruments necessary for the transportation of gas to the Mutún Steel Complex. Additionally, the Mutún Steel Company signed the agreement for interconnection and operation of facilities with the aforementioned subsidiary, since the flow of gas to Brazil will feed the Mutún Steel Plant.

The pipeline has a pipeline of approximately 8 kilometers from the “hot tap” of the main pipeline that runs from Santa Cruz to Brazil.

As a result of the work of the ESM, the Mutún Steel Complex is a reality and the state oil company confirms its strategic role as the energy pillar of the country's industrialization process.