Brazil's Petrobras looks to expand Bolivia natural gas projects
RIO DE JANEIRO, July 9 (Reuters) - Brazilian oil company Petrobras is looking to expand its Bolivian natural gas investments but such spending depends on Bolivia selling larger volumes to buyers in Brazil, its top executive said on Tuesday.
Speaking in Bolivia, Petrobras CEO Magda Chambriard said new investments must boost the supply of Bolivian natural gas to Brazil at competitive prices to meet growing domestic demand from industry.
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While Bolivia is home to significant natural gas reserves, production of the fuel used to generate electricity, among other industrial and farm uses, has nearly halved from its peak a decade ago. The gas production decline is at the heart of the country's recent economic woes.
Chambriard, who is visiting Bolivia as part of a delegation led by President Luiz Inacio Lula da Silva, noted that operations by state-run Petrobras accounted for around half of Bolivia gas production in the mid-2010s. The land-locked Andean country hit peak gas output of about 60 million cubic meters per day (cmd) at that time.
Bolivia currently produces some 35 million cmd.
The new Petrobras chief, who took the reins in May, said the company wants to grow its Bolivian gas production to some 30 million cmd, from 9 million cmd.
"But for this to happen, this gas and this investment must be capable of delivering gas for fertilizers and for Brazilian petrochemicals at affordable prices," she said, according to an audio recording provided by Petrobras.
Last week, Brazilian industry leaders told Reuters they would join Lula's delegation to Bolivia in a bid to secure more natural gas after a supply deal with neighboring Argentina expires.
Boosting access to cheaper natural gas is essential to Lula's hopes of spurring domestic fertilizer production, which has lagged as domestic Brazilian gas is seen as expensive.
(Reporting by Marta Nogueira in Rio de Janeiro; Writing by Andre Romani; Editing by Rod Nickel)