Page 10 - GLNG Week 21 2022

GLNG AMERICAS GLNG

Petrobras to import more LNG to make

up for Bolivian gas supply cuts

IMPORTS BRAZIL’S national oil company (NOC) Petro- Media reported on May 23, citing trade data, that
bras has said it may need to import more LNG YPFB had also reduced shipments in the month
due to an unexpected cut in shipments of natural of April.
gas from Bolivia. Preliminary figures based on data from Bra-
Petrobras noted in a statement that supply zil’s National Agency of Petroleum, Natural Gas
concerns had arisen as a consequence of the and Biofuels (ANP) show that the Bolivian NOC
fact that YPFB, the Bolivian NOC, had reduced sent only 7.5 mcm per day of gas in the week of
the volume of gas flowing to Brazil by 30% this April 3-9, down from an average of 19 mcm per
month. YPFB is supposed to be delivering 20mn day in the preceding weeks. This is equivalent to
cubic metres per day of gas under the terms of its just 37.5% of the agreed contractual volume of
contract with Petrobras, the statement said, but it 20 mcm per day.
has only been delivering 14 mcm per day. According to Argus, the most recent avail-
The cuts put the Brazilian company in a able weekly figure indicates that Bolivian gas
position of needing to find another way to shipments amounted to 16.7 mcm per day in the
cover domestic gas demand, the statement week of May 9-15. This is equivalent to 83.5% of
said. “This 30% decrease was not foreseen and the total contracted volume of 20 mcm per day.
implies the need for additional imports of LNG Petrobras has not speculated on the reasons
to meet Petrobras’ commitments of gas supply,” for the reduction in Bolivian supplies. Argus cited
it commented. two possible reasons, though, noting on the one
Petrobras also stated that it intended to hand that Bolivia had seen pipeline flows drop
respond to YPFB’s unanticipated reductions this year as a result of declining upstream pro-
with “fitting actions” but did not say what these duction and on the other hand that Bolivia might
might entail. be sending more gas to Argentina under a new
This month’s supply cuts are worrisome, as export agreement with Integración Energética
Bolivian gas deliveries of 20 mcm per day cov- SA (IEASA), a state-owned oil, gas and power
ered 22% of Brazilian gas demand in 2021. How- company formerly known as Enarsa.™
ever, they are not the first of their kind. Argus

P10 www. NEWSBASE .com Week 21 27•May•2022