Argentina wants to increase gas imports from Bolivia, but is waiting on Brazil

According to four sources, Argentina is negotiating to significantly raise its imports of Bolivia’s natural gas to between 16 million and 18 million cubic meters per day during the winter of the southern hemisphere. However, the idea is contingent on its bigger neighbour Brazil’s agreement.

The South American country is looking to alternative gas supplies after being hit hard by rising liquefied natural gas (LNG) prices due to the war in Ukraine, which threatens to cause a deep energy trade deficit this year.

A second Argentine government source and an industry source with direct knowledge of the negotiations said the deal to increase Bolivia’s gas imports is subject to negotiations with Brazil. The import volume increase would happen in the three-month winter period.

Argentine Economy Minister Martín Guzmán will travel to Brazil on Friday and will meet with Mines and Energy Minister Bento Albuquerque, among others.

“At the moment, the Ministry of Mines and Energy does not expect Brazil to demand less gas from Bolivia,” the ministry told Reuters.

Emilio Apud, Argentina’s former energy secretary who now runs a consulting firm, is sceptical about the deal unless rival Argentina buyer Brazil pulls out of some of the demand it has already agreed with Bolivia.

Another industry source familiar with the matter told Reuters that Brazil is willing to allow part of its Bolivian gas quota to be redirected to Argentina because of heavy rains boosting its hydroelectric power output.

Source: UOL

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