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    Argentina Strikes Better Gas Deal With Bolivia

Summary

Argentina to see savings of $460mn.

by: Pietro Pitts

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Natural Gas and LNG Latest & Breaking News, Americas, Political, Contracts and tenders, News By Country, Argentina, Bolivia

Argentina Strikes Better Gas Deal With Bolivia

Argentina and Bolivia have signed an addendum to an existing natural gas purchase agreement that will see Argentina import less gas during months of lower gas consumption and avoid certain payment penalties, saving Argentina an estimated $460mn over two years, the country’s energy secretariat said February 14.

The addendum relates to Argentina’s contract with Bolivia through 2026, and establishes a different price schedule and contractual quantities, with greater seasonality deliveries during 2019-2020.

“In recent years, Argentina was been fortunate to discover and develop important natural gas resources and reserves, particularly in the Vaca Muerta formation, which has allowed local production to increase significantly,” Argentina’s energy secretary Gustavo Lopetegui said. “At present, we have exportable gas surpluses during the summer, but we still require imports during the winter.”

The agreement establishes that during the summer period – October to April – Bolivia’s state oil and gas company YPFB will deliver to Argentina 11mn m3/day of gas. During the early winter months – May to September – deliveries will increase to 16mn m3/day of gas, while during the peak winter months of June, July and August, they will rise again to 18mn m3/day.