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Brazilian industry reps to travel with Lula to Bolivia in bid to obtain cheaper gas
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Brazilian industry reps to travel with Lula to Bolivia in bid to obtain cheaper gas
Jul 5, 2024 9:44 AM

RIO DE JANEIRO, July 5 (Reuters) - Brazilian industry

representatives will travel with President Luiz Inacio Lula da

Silva to Bolivia next week, in a bid to obtain natural gas that

should become available after expiration of a supply deal to

Argentina, the representatives told Reuters.

Argentina has a supply contract with state-run Bolivian oil

firm YPFB set to expire in September. Then, a

volume of up to around 4 million cubic meters per day could

become available, said the representatives.

"We are going to talk to the authorities and find out what

is possible", Lucien Belmonte, executive president of Abividro,

an industry association of glass firms, told Reuters.

There are still a number of unknowns, said Belmonte,

including price, and if the volume would actually become

available come October.

Bolivia has faced a foiled military coup against the

government last week, and the country's diminishing domestic oil

and gas output has been at the heart of its economic and

political problems.

YPFB President Armin Dorgathen told Reuters in an interview

on Sunday that Brazil was one of the countries most keen to

secure gas supplies by building strategic partnerships with

YPFB.

He described the recent investment in June by Brazilian firm

Fluxus as "relatively big" and said YPFB was "looking for other

Brazilian partners" as well as Petrobras, to boost production,

exploration and "industrialize" the sector.

The Brazilian representatives hope to use the presidential

visit to kickstart talks eventually sign a deal directly with

YPFB, which they claim would allow them to obtain a lower price

than if they bought through Brazil's state-run oil firm

Petrobras, which has a standing contract with YPFB.

The Brazilian industry has a demand for around 40 million

cubic meters of gas per day. Brazil's industry has long faced

issues with high gas prices, that representatives claim make

their firms less competitive.

Lowering gas prices is a priority for Brazil's Energy

minister Alexandre Silveira.

"We are looking for an opportunity, what could be an

opportunity, to regain competitiveness for the industry," said

Belmonte.

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