According to an agreement between Bolivia and Argentina, both countries will be selling up to 16 MMm3d of gas at $US 9 per million BTUs.

During the winter, Bolivia will significantly increase the volume of gas sales to Argentina, until reaching a peak value in the coming season.

The president of Integración Energética Argentina Sociedad Anónima (IEASA), Agustín Gerez, declared that Bolivia and Argentina negotiated a new energy contract that will boost sales volumes to 16 million cubic meters per day (MMm3d) at a price of approximately US$ 9 “plus an extra” per million BTU.

“The supply from Bolivia was 7.5 million meters, now we are going to reach between 10 and 11 million meters this week.” By mid-year, according to Gerez in an interview with Clarín, they are aiming to reach 16 million meters (per day).

In the negotiations, the Bolivian state-owned Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) was involved in boosting the volume of gas sent to neighboring Argentina for the winter, when the demand for this type of energy is at its highest.

According to sources, Gerez was responsible for leading the logistics negotiations, endorsed by both President Alberto Fernandez and Vice-President Cristina Fernandez de Kirchner.

A further matter in the negotiation refers to the price per million BTU. Clarín states that “Bolivian gas purchases result in savings compared to import prices. Per million BTU (the sector’s unit of measurement), the Bolivian gas will be priced at around US$ 9 plus some additional, while the LNG gas will be paid in a range of US$ 35 to US$ 45”.

However, Bolivia and Argentina are partners in energy matters.

A lower quota than was sought by Argentina was offered to be delivered by the state oil company, 9 MMm3/d in winter, was the initial offer.

On April 1st, Bolivia’s state-owned oil company reported that the negotiations of the fifth addendum with Argentina would be one month longer. “Over this time period the agreement on the natural gas that will be exported by Bolivia to northern Argentina will set the terms and conditions for this deal to be positive for the country’s economic development,” the press release stated.