MercoPress. South Atlantic News Agency

Gas deal between Bolivia and Argentina signed

Fernández thanked Arce for his efforts

The Government of Argentina Thursday announced a new understanding with Bolivia to secure a daily gas supply of 14 million cubic meters and a commitment so that, in the future, Argentina will have priority to import any surplus in output.

Negotiations had been underway during the week. Brazil's nod was needed because that country too had an import agreement with Bolivia and the amounts now granted to Argentina need to stem from that stock.

Bolivian President Luis Arce Catacora explained that Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) will sell the same volumes of gas it delivered to the Argentine market last year: 14 million cubic meters (MMm3) per day for the winter and 10 MMm3/day for the rest of the year. Volumes may increase, depending on higher Bolivian output.

The announcement finalized months of negotiations and was made, as planned, during Arce's trip to Buenos Aires to meet his Argentine counterpart, Alberto Fernández, who thanked Arce for “his efforts” in reaching the new deal.

There will be two prices: an “emergency” one at a rate of US$ 9 per million BTU (unit of measurement of gas) for the first 10 million cubic meters and US$ 18 per million BTU for the rest of the supply.

The energy agenda at Casa Rosada seeks to secure enough gas to not be forced to apply cuts to industrial activities in order to guarantee the heating for households in northern Argentina.

The joint declaration between the two nations means “advancing in the consolidation of the bilateral energy agenda, which entails, among other points, guaranteeing the supply of gas in significant volumes for the current administration.”

Argentina and Bolivia agreed on ”the importance of carrying out concurrent actions so that the Natural Gas Purchase and Sale Agreement between YPFB and IEASA reflects a new guaranteed delivery regime of 14 MMmcd (million cubic meters per day) and prioritizing, according to availability, additional volumes in the winter period, and the cessation of rights and obligations before 2025.“

The two governments also ”agreed to advance in the analysis of investment opportunities for YPFB in Vaca Muerta and to work jointly in the identification of alternatives for the supply of liquid hydrocarbons in pursuit of the energy security of both States.”

Read also: Gas supply deal with Bolivia almost closed, Argentine officials say