Petrobras fines Bolivia’s YPFB for low LNG volumes

Brazil’s state-run oil company, Petrobras, has fined Bolivia’s national oil company, YPFB, for failing to supply contracted liquefied natural gas (LNG) volumes through the Bolivia-Brazil Pipeline during 2018. The amount of the penalty paid last week is not yet known.

Petrobras charged YPFB to offset losses incurred while the company compensated the missing natural gas volume from other sources. According to the terms of the contract, Bolivia should be able to supply up to 31.5m cubic meters per day if requested by Brazil. According to Reuters, last year Petrobras requested an average of 26m cubic meters of LNG per day, however YPFB only provided 22.6m cubic meters per day. Bolivia has reduced exploratory investments in recent years, leading to a drop in production, while domestic demand for gas has increased.

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