MercoPress. South Atlantic News Agency

Brazil opens pipeline to allow Bolivian company to sell gas

The Brazilian government authorized Bolivian oil and gas company YPFB to use the Gasbol pipeline to sell gas to other companies in Brazil beyond state-run oil firm Petrobras, according to a publication on Friday in the official gazette.

Brazil’s Energy Ministry gave the green light to a request by a local subsidiary of YPFB to sell gas through the Gasbol pipeline that links both countries, which was basically being used only by Petrobras up to the end of 2019, when a contract expired.

Brazil wants to open the 3,150-km pipeline to more companies now that the Petrobras deal has ended. The government is seeking higher competition as a way to bring prices down.

YPFB’s Brazilian unit will deliver Bolivian gas to Mato Grosso do Sul state in Brazil, the note on the official gazette said. Volumes are seen at 1.2 million cubic meters (MCM) per day in the first year, growing to 2.6 MCM/day in 2021 and stabilizing at 3.6 MCM/day from 2022 onwards.

The Bolivian company has yet to send contract details to Brazil’s oil regulator, ANP, including negotiated prices.