Page 12 - LatAmOil Week 15 2022

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Santoro further revealed that Alagoas is updat-
ing the state’s legal regime in an effort to facili-
tate gas distribution efforts in the open market.
This update is expected to secure full approval
by June, he said.
In light of Petrobras’ divestment programme
and the latest shifts in the gas industry, which
is being liberalised, several new investment
opportunities are emerging in the state. These
include upstream production operations led by
Origem Energia, as well as new projects led by
ExxonMobil, which is looking to launch explo-
ration work this year.
Since Origem resumed gas production just
two months ago, Santoro told Argus Media, Ala-
goas has shifted from exporting its gas to other
states to using its production to meet its own
needs. The state now projects that rising output
at onshore gas fields will bring Alagoas’ gas pro-
duction back to the levels that prevailed in the
1970s, he said.
Santoro further explained that he expected
gas to play a critical role in the state’s energy Origem is developing several fields in Alagoas state (Image: Origem)
transition, particularly since Alagoas does not
have any wind or solar generation capacity production plant Alagoas at present, and the
yet. He pointed out, though, that the state was state is currently exploring 13 sugarcane mills as
working to expand its biomethane and biogas potential locations for biogas generation plants,
production. Alagoas is home to one biomethane he said. ™

BOLIVIA
YPFB unveils new gas deal with Argentina

BOLIVIAN President Luis Arce revealed last
week that the national oil company (NOC)
YPFB had cleared the last obstacles to finalis-
ing a new natural gas supply agreement with
Argentina.
According to Arce, YPFB is now in a position
to commit to sending the same volumes of gas
that it did last year: 14mn cubic metres per day
during the winter and 10 mcm per day during
the summer, with the option to increase deliv-
eries if Bolivian production goes up. The NOC
had to secure a green light from its Brazilian
counterpart before making this pledge, since
Petrobras had first claim under its pre-existing
supply deal for Bolivian gas, he noted.
Brazil’s willingness to cede these volumes
left them available for delivery to Argentina, he
explained. He indicated that the gas would be Arce and Fernández signed the gas deal last week (Photo: Twitter/@LuchoXBolivia)
sold to Integración Energética SA (IEASA), a
state-owned oil, gas and power company under future. This is the purpose of the option to boost
a two-tiered pricing system. In the first tier, deliveries if Bolivian output increases, he stated.
IEASA will be able to buy its first 10mn cubic Arce was speaking during a trip to Buenos
metres of gas from YPFB at the “emergency” rate Aires, during which he met with his Argentinian
of $9 per million British thermal units. However, counterpart Alberto Fernández to sign the gas
prices will rise thereafter into the second tier of supply deal.
$18 per mmBtu. During that meeting, Fernández thanked
Meanwhile, he noted, Argentina will have him for “his efforts” in arranging the delivery
first priority to extra Bolivian gas volumes in the agreement..

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