This time, Brazil shows clearly that we are not reliable, that Bolivia is not to be trusted! They prefer to pay more for their energy rather than trusting current Bolivian government that does not honor, nor respects international laws, let alone foreign investment.
Lidia Mamani reports for Pagina Siete:
The neighboring country will process up to 41 MMmcd with a plant in Bahia
Brazil advocates a more expensive gas for energy security
Bolivian gas price costs $10 per million BTUS, while LNG imported by the neighboring country, from overseas markets is quoted at $17 per million BTU.
Brazil has chosen to purchase natural gas in foreign markets at a higher price than that paid to the Bolivian State, in order to ensure its energy security. [clear understanding how Bolivia is viewed outside…]
In September of this year, the Bay plant for the re-gasification of liquefied natural gas (LNG) will be completed and is the third terminal that includes the neighboring country to supply their domestic market. In recent months, Petrobras increased the import of LNG and the new plant will add to the already existing ones in Guanabara Bay and in Pecem, which increase throughput to 41 million cubic meters per day (MMmcd). Through a contract (GSA), Brazil buys from Bolivia up to 30 MMmcd.
The price of Bolivian natural gas exported to the neighbouring country oscillates between nine and 10 dollars per million BTU (British thermal unit, by its acronym in English), while the LNG imported from different countries is priced between 15 and 17 dollars per million BTU, more than 40%.
“Currently, the Brazil re-gasification capacity is 27 MMmcd, but when TRBA, plant in Bahia, starts running the country will expand its capacity to 41 MMmcd, which exceeds the 30 MMmcd of Bolivian gas,” said the Director of the logistics of Petrobras, Luciana Racheid, during the presentation at the Forum “River Gas”, Wednesday [February] 6, according to the TN Oil portal.
According to two experts on hydrocarbons, doesn’t matter to the neighboring country to buy gas at a price higher than the national [Bolivia], since only by doing it, guarantees the provision of its market [Brazil].
Analyst Álvaro Ríos said that 11 years ago, that there are no discoveries of gas or oil in Bolivia, which causes insecurity, which requires Brazil.”What is telling us the increase in the import of LNG, which engages in other markets, Brazil is that it needs more gas, instead of opting to Bolivian fuel, opting instead for other more expensive; This happens because it shows Bolivia as an unstable country to demand more than the 30 MMmcd”, he said.
The consumption of gas in the neighboring country in recent months reached 74.5 MMmcd, of which Bolivia supplies among 20 and 30 MMmcd; the rest is imported from Trinidad and Tobago, Indonesia and Qatar, among other countries.
Analyst Bernardo Prado said that Bolivia should look for alternative markets such as the North of Chile or regions that are far removed from the Brazilian coast. In addition, you must develop a strategy to renegotiate exports to Brazil. “When they signed the contract with Brazil, they had no other option but to buy Bolivian gas; now they have many alternatives,”he added.
It doesn’t matter if we want to look at Chile or elsewhere, when we already have a pipeline to the biggest market just across our largest border, we are NOT, repeat NOT expanding our supply. Bolivia, currently is not to be trusted, not to get better contracts, nor capture foreign investment and technology… so much for the 21st century socialism mirage!