MercoPress. South Atlantic News Agency

Bolivia warns Argentina of possible shortage in gas supply due to seizure of plants

YPFB has invoked the release of compliance with its obligations due to a Force Majeure event.

The Bolivian state-run oil company YPFB Monday notified Argentina that due to the taking over of some of its facilities in the hands of the groups leading to the overthrow of President Evo Morales, there could be problems with the supply of gas. But the Mauricio Macri administration sees no reason to fear shortages thanks to the reserves stocked, it was reported.

Argentine authorities have described the present situation as “normal” after YPFB sent a letter to the energy agency Ieasa (formerly Enarsa) describing the “current limitations” the company is going through, which could impact supply in the coming days.

In that note addressed to Ieasa head Claudia Mundo, YPFB warns that “emerging from the growing social upheaval that is occurring in Bolivia” there are groups of people who took over the Carrasco field next to nearby hydrocarbon pumping and compression stations, and similar situations in other facilities of the company could not be ruled out, which could eventually affect gas output.

“This reliable notification is intended to inform that YPFB, being unable to fulfill its obligations under the Natural Gas Purchase Contract, for an event beyond its control, invokes the release of compliance with its obligations due to a Force Majeure event,” according to the letter released by the Buenos Aires daily La Nación.