Brazil and Bolivia make an agreement on gas supply

The Brazilian and Bolivian government signed an agreement to supply 1.1m cubic meters of gas from YPFB (Yacimentos Petrolíferos Fiscales Bolivianos S / A) to the Termelétrica Fronteira.  It is to be built in the Ladário region of Mato Grosso do Sul by Camaçari RJ Participações at a cost of US$300m.

The project involves Camaçari building a thermoelectric plant with the capacity to generate 266.4 megawatts of energy and participate in the New A-06 energy auction, to be carried out by Aneel (National Electric Energy Agency) on September 29. The company must provide documentation proving that there is enough gas available to keep the unit running continuously. According to the secretary of Environment, Sustainable Development, Production and Family Agriculture, Jaime Verruck, the contract guarantees gas demand for Camaçari, thus ending a negotiation process that began more than two years ago with Bolivia.

In addition to discussing the thermoelectric plant, the government is working to make UFN3, a nitrogen fertilizer production facility under construction in Três Lagoas (also dependent on gas), to make direct purchases of fuel.  Its consumption was estimated at 2.2m cubic meters per day. The unit, which began to be built in 2011 and had works stopped in 2014, was in the process of selling to a Russian group, which ended due to legal barriers. On-site investments already exceed R$4bn, with 81% of the project now completed.

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