MercoPress. South Atlantic News Agency

Bolivia demands “fairer” prices for gas sold to neighbours

The Bolivian government ratified Tuesday its decision to increase the price of natural gas exported to Brazil and Argentina because it considers them “unfair”.

Hydrocarbons minister Andres Soliz and the president of Bolivia's oil company (YPFB) Jorge Alvarado made the official announcement in La Paz.

Currently Brazil pays Bolivia 3.23 US dollars for each million BTU and Argentina 3.18 US dollars.

"Bolivia has all the right to demand negotiations for better prices with the countries we're supplying with our natural gas", said Mr. Alvarado. "We consider current prices to be unfair and must necessarily be reviewed", added Mr. Soliz.

Both officials added that following talks with Venezuela's Minister of Energy and Petroleum, Rafael Ramirez, it was quite clear that "Venezuela will not supply subsidized gas to Brazil and Argentina" as was advanced by the Brazilian press.

In an official release from Caracas Venezuela's Hydrocarbons minister denied his country had offered subsidized natural gas to Brazil adding it was a "misinformation" and that when the giant pipeline extending throughout South America is finished, "Venezuelan gas will cost 5 US dollars per million BTU".

"This is only part of a stage of pressures to try and "soften" Bolivia when President Morales is about to begin gas price negotiations with its neighbours", said YPFB president Jorge Alvarado.

As to the future prices for natural gas, "it would be a gross mistake to advance through the press the prices from which we are willing to begin negotiations with neighbouring countries".

However Mr. Soliz was cautious as to the coming price negotiations for natural gas since Brazil has offered to jointly build a huge petrochemical complex in the Bolivian/Brazilian border, which "we have to be careful is not tied to frozen gas prices".

"We're always tempted with great offerings for the future, but?currently it seems they might be trying to extract disadvantageous prices for Bolivia. So that's why we have to be careful at present and in the future", highlighted Mr. Soliz.

As to the energy sector in Bolivia, Mr. Soliz said that the President Evo Morales administration will not sign any documents or fix prices, "until the rules of the game have been reviewed" in the hydrocarbons sector.

President has promised to respect foreign corporations' assets but insists in a greater government control over the country's natural gas reserves.

Bolivia's reserves are the second most important in Latinamerica behind Venezuela.