President Alberto Fernández assured this Thursday that Bolivia will respect the current contract regarding the supply of gas, which will allow it to receive 14 million cubic meters (MMm3) per day as in 2021, and stressed that in the case of an increase in the production of the deposits of the neighboring country, Argentina “will have priority”.
“The current contract remains in the same conditions,” said President Fernández during the joint press conference with the President of Bolivia, Luis Arce, at the Government House, after a meeting they held during this first official visit by the head of Bolivian state.
With this definition, the AArgentina will be able to buy a volume of Bolivian natural gas of 14 MMm3/dayas occurred in the months of peak demand last year.
“In the event that Bolivia increases its gas production, Argentina will have priority”louis arce
This volume is up to 50% higher than what the Bolivian Fiscal Oilfields (YPFB) offered in the negotiations carried out in recent months,
Fernández said that “in the event that Bolivia increases its gas production, Argentina will have priority”, although the agreed prices in the case of guaranteed gas or the eventual surplus have not yet been specified to be generated in the future.
“We celebrate having this safe gas, given that in recent years Bolivia has had a decline in its production, therefore we hope that the increase can arrive as soon as possible,” said the Argentine president at the press conference.
For his part, President Arce recalled that “they are holding negotiations with Brazil to sign a new contract” for gas supply to that country.
“The de facto government that preceded us signed a contract contrary to the interests of the Bolivian people,” said Arce.
Consequently, “we are making an effort to maintain the levels of past management, and in the case of additional production, Argentina will have priority”¨.
In a joint statement, both presidents agreed to advance in the consolidation of the bilateral energy agendawhich entails, among other points, guaranteeing the supply of gas in significant volumes for the present management
In addition, specific mechanisms will be developed between YPFB and the national company Integración Energética Argentina (Ieasa) to reconcile balances for the benefit of both countries.
Both presidents agreed on the importance of carrying out concurrent actions so that the Natural Gas Purchase Agreement between YPFB and IEASA reflects a new guaranteed delivery regime of 14 million cubic meters of gas per day.
In this way, it will be “prioritizing additional volumes in the winter period based on the availability”, and the cessation of rights and obligations before the 2025 management, for which purpose they commissioned the Ministries and responsible entities to finalize the corresponding documents, according to the understandings signed during the day.
Finally, they agreed to advance in the analysis of investment opportunities for YPFB in Vaca Muerta and to work jointly in the identification of alternatives for the supply of liquid hydrocarbons in pursuit of the energy security of both States.
