• Categories
  • Archives

Brazil’s Drop in Demand Causes 25% Fall in Bolivian Gas Production

Bolivian gas pipeline
Brazil has reduced its demand for Bolivian natural gas to 24 million cubic meters per day, prompting a drop in production, according to reports in the La Paz press.

After requiring 30.2 million cubic meters of gas at the beginning of the month, Brazilian demand oscillated between 24-26 million cubic meters in subsequent days falling as low as 21 million cubic meters last weekend, said industry sources.

It is expected that Bolivia will send an average of 24 million cubic meters of natural gas per day to Brazil, or the minimum amount stipulated in their bilateral contract.

Brazil needs less Bolivian gas because it is producing more natural gas at home and also has built two liquefied natural gas (LNG) re-gasification terminals in the country's northeast capable of receiving LNG from any part of the world.

Those plants were built partly in response to Bolivia's move in 2006 to nationalize its energy reserves and raise the price it charges Brazil for natural gas.

When Brazil requires less natural gas, Bolivia tends to increase sales to Argentina to the full 7-million-cubic-meter capacity of the natural gas pipeline connecting those two countries.

However, the Argentine market currently is demanding just 6 million cubic meters per day, while between 6 million and 8 million are destined for the Bolivian domestic market.

In total, Bolivia is producing around 38 million cubic meters of gas per day, compared with the more than 40 million it was producing at the start of July.

Bolivian state-run energy firm YPFB announced that the drop in Brazilian demand for gas affects domestic fuels production and therefore Bolivia is being forced to import not only diesel but also gasoline and liquefied petroleum gas.

Bolivia's natural gas exports fell 25.6% in the first five months of the year compared with the same period last year mainly because of the drop in Brazilian demand.

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

An Ambassador of Brazilian Letters

"International literary meetings are indispensable, not only so that we can leave the provincialism ...

Brazil Loses What Many Consider Its Best Contemporary Novelist

Brazilian writer João Ubaldo Ribeiro, 73 years old, died today, from pulmonary embolism, at ...

Brazilian University Gets Zero Energy Consumption Building

USP (University of São Paulo), Brazil's most renowned university, which is financed by the ...

Santa Catarina, Brazil, Indian child

Brazilian Anti-Indian Groups Threaten Bloodshed Against Land Demarcation

Two notes issued at end of last month by Brazil's Indianist Missionary Council (Cimi) ...

Lula reaches to the crowd during political rally in Brazil

Brazilian Elections: Does Lula Deserve to Win?

President Luiz Inácio Lula da Silva has managed to keep his distance from the ...

São Paulo, Brazil, Finds Out It’s Not Easy to Be Green

Brazilian merchant Lizete Araújo da Silva, 51, has worked for approximately ten years in ...

With Brazil’s Blessing and US’s Opposition Venezuela Breezes to UN Seat

The battle for a soon-to-be vacant non-permanent seat on the United Nations Security Council ...

Farmland in South of Brazil Now Costs More than in Southeast

Prices of farmland have risen sharply of late in Brazil, driven up by rising ...

The Stones’s Free Bigger Bang Concert from Rio, Brazil, Comes Live to the Net

After shattering North American box office records, the Rolling Stones are taking their sold-out ...

Brazilian Army in Rio de Janeiro, Brazil

Rio, Brazil’s Most Violent City, Calls Army to the Rescue

Brazilian Governor Sergio Cabral Filho has formally requested that Brazil's army intervene to contain ...