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.