MercoPress. South Atlantic News Agency

Bolivia delivering smaller volumes of gas to Argentina than set forth in the contract

The problem with Argentina is negotiable, according to Minister Sánchez.

Bolivia's Hydrocarbons Minister Luis Alberto Sánchez Friday admitted that gas deliveries to Argentina are kept at an average of 10 million cubic metres per day (MMm3d), far below the 17.2 MMm3d agreed upon in the contract

Sánchez justified the drop in demand due to the current rainy season, which helps Argentina generate electricity from its hydroelectric plants, in addition to the overdue gas bills plus interests for which Bolivia is about to foreclose the collaterals up to “over 140 million US dollars.” But “this is a reparable issue, it is a negotiable issue,” Sánchez explained.

Bolivian and Argentine officials are scheduled to meet next week in an attempt to find a solution. Argentina's total debt amounts to 453.4 million US dollars.

Meanwhile, negotiations with Brazil to continue to supply gas to the largest country in the region are going smoothly. After meetings with Petrobras executives in Brazil, Sánchez is optimistic the sale of gas could be extended for up to five years.

”We have advanced very well (...) we have an agenda. The contract with Brazil does not end in 2019,” said Sánchez.