Bolivia agrees to supply Argentina with winter gas
Bolivia has agreed to deliver 14mn m3/day of natural gas to Argentina during winter to avoid energy shortages, the latter's economy ministry reported on April 8.
Under the agreement, announced at a press conference in Buenos Aires by Argentine president Alberto Fernandez and Bolivian president Luis Arce, Bolivia will prioritise the delivery of additional supply if it is available - potentially up to 18mn m3/d.
Argentina is seeking alternatives to LNG imports, the price of which has soared in recent months as a result of the global energy crisis. The country estimates it will pay on average $12.2/mn Btu for the Bolivian gas, with the price of some of the supplies linked to Brent oil.
"The average price that was agreed upon is highly convenient for the country .... the international LNG price more than triples it," Argentine secretary of energy Dario Martinez said in a statement.
Last winter Argentina also took 14mn m3/d of Bolivian gas. The country had hoped to secure greater volumes this coming heating season, according to Reuters, but that was contingent on Brazil relinquishing its claim to some of its agreed supply from Bolivia.
Argentina is also counting on extra gas supply from the Vaca Muerta shale play to shore up its energy security this winter.
"Argentina is going to have to import less gas this year than in previous years because it has a greater supply of gas and this has to do with the growth we have had in recent years in terms of gas exploitation in Vaca Muerta," presidential spokesperson Gabriela Cerruti said in a televised press conference on March 31.