Diversion: Bolivia is to shift gas from Argentina and the Brazilian city of Cuiaba to supply Sao Paulo
La Paz agrees to Petrobras gas surge
Bolivia's energy minister said today the country would temporarily increase its natural gas exports to Sao Paulo, Brazil, following a request from Brazilian state-run oil company Petrobras.
Energy Minister Carlos Villegas told a news conference the increase would start today and last until 14 September. During that time, natural gas supply will be cut to a power plant in the Brazilian city of Cuiaba, Reuters reported.
Villegas said Petrobras had requested more natural gas because Brazil had problems with its hydrogeneration capacity, adding that exports of the fuel to Argentina have been "slightly" reduced in order to meet Brazil's request.
"Bolivia guarantees the provision of 30 million (cubic metres a day) for the GSA contract (to export natural gas to Sao Paulo)," Villegas said, saying the Brazilian request for the maximum daily level came at a moment of lower production.
He said Bolivia was producing some 38.3 million cubic metres of natural gas a day at present, down from the average 40 million cubic metres.
He said the fall in production "won't last long" and it is due to a flooding in the Margarita field, run by Spain's Repsol-YPF, and maintenance work at Petrobras' Sabalo field and in the natural gas pipeline network.
A Petrobras spokesman in Bolivia could not immediately be reached to comment.
On average, Brazil currently imports about 26 million cubic metres a day from the maximum supply contract of 30 million cubic metres. Bolivia's second-biggest gas customer, Argentina currently imports to a maximum daily limit of 7.7 million cubic metres.
Brazilian state-run energy company Petrobras is the largest energy investor in Bolivia, which has the second-biggest natural gas reserves in South American after Venezuela.