Page 13 - LatAmOil Week 22 2022
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LatAmOil                                          BRAZIL                                           LatAmOil



                         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. ™



       Week 22   02•June•2022                   www. NEWSBASE .com                                             P13
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