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The facility will be able to turn out about 300,000 evaluate several different plans for building the
cubic metres per day of LNG, most of which will LNG terminal in or close to Porto do Itaqui. At
be delivered to Suzano, it said. the time, it noted that Servtec had already drawn
The LNG will be loaded onto trucks and up multiple proposals for the terminal project
transported by road to Imperatriz, a town in and had previously submitted one such plan to
Maranhão where Suzano operates a large pulp Empresa Maranhense de Administração Por-
mill, Eneva added. At Imperatriz, the LNG will tuária (EMAP), the port authority of Maranhão
be transferred to a regasification unit so the mill State, in response to a call for expressions of
can use gas as fuel and reduce its carbon dioxide interest (EoI).
emissions, it explained. Eneva also explained that it would not com-
The company said in its statement that it mit to building the LNG import terminal until
hoped to strike similar agreements with other it could carry out technical studies of the project
industrial gas consumers and was working to and assess its economic feasibility.
replicate this supply model with them. It did Additionally, it said, the partners would have
not name any other potential customers but to complete their assessments of the various
noted that it was continuing to build a new LNG proposals and obtain the necessary permits and
import terminal in Maranhão State to help sat- authorisations.
isfy rising demand for the fuel in Brazil. If the companies move forward, it added,
Last year, Eneva said it was joining forces they will form a joint venture split between
with Servtec, a Brazilian investment firm, to Eneva with 51% and Servtec with 49%. ™

BOLIVIA
YPFB head says economic factors drove

decision to cut gas exports to Brazil

THE head of Bolivia’s national oil company This offer was attractive enough to entice the
(NOC) YPFB has cited economic factors as Bolivian NOC to cut gas flows to Brazil, he said.
the reason for his company’s recent decision to “It was an economic decision rather than a polit-
reduce natural gas flows to Brazil by 6mn cubic ical one to maximise resources,” he was quoted
metres per day in April and increase deliveries as saying by Argus.
to Argentina. YPFB stands to benefit financially from this
Earlier this week, YPFB president Armin development, whereas Petrobras will suffer as a
Dorgathen was quoted by Argus Media as saying result of its reluctance to pay more for Bolivian
that his company had not cut gas supplies to Bra- gas, Argus noted.
zil abruptly, “from one day to the next.” Rather, The Brazilian NOC is now in the position
he said, YPFB had been in negotiations with its of having had to import extra LNG at a cost
Brazilian counterpart Petrobras for some time equivalent to $22 per mmBtu to cover demand,
with the intention of renewing an existing con- it explained.
tract, provided that the pricing regime could be Brazil’s President Jair Bolsonaro has com-
revised. plained bitterly about YPFB’s move to send gas
The Bolivian side was insisting on a price to Argentina.
increase, Dorgathen explained, as the contract, Late last month, he hinted that this step had
first signed in 1996 and amended eight times been taken deliberately, as part of a wider effort
since then, set a rate that was far too low. “The backed by Petrobras to hinder his effort to win
timing and current price circumstance allow us re-election in Brazil’s upcoming elections in
to maximise prices,” he remarked. October. Bolsonaro’s main opponent is Luiz
Petrobras responded negatively to YPFB’s Inácio Lula Da Silva, a leftist and former pres-
request for a rate hike, Argus reported. But in the ident who has been outperforming him in the
midst of the negotiations, Dorgathen said, the polls.
Bolivian company was approached by Argenti- “Bolivia cut 30% of the gas for us to deliver
na’s Integración Energética SA (IEASA), a state- it to Argentina. How did Petrobras react to this
owned oil, gas and power company that was issue? The gas, if we have to buy it from some-
looking to buy more gas during the winter. where else, is five times more expensive. Who
IEASA was prepared to pay a higher price of will pay the bill and who will be held responsi-
$7-9 per mmBtu of gas, plus enough to cover any ble? It is a business that seems orchestrated to
take-or-pay penalties YPFB would incur under exactly benefit you know whom,” Mercopress
its contract with Petrobras, he stated. quoted him as saying. ™

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