Bolivia gas and power long-term outlook 2019

Bolivian gas production capacity continues to decline and exploration has been disappointing. With Vaca Muerta increasing production, Argentina has a reduced need for volumes from Bolivia during the summer but will still depend on Bolivia for its winter and Northern region. In Brazil, with the original agreement finishing in December 2019, YPFB signed a transition agreement with Petrobras for the original daily contracted quantity until 10 March 2020. Until Petrobras’ future offtake is defined, Bolivian gas marketing in Brazil remains uncertain. In this Southern Cone Gas and Power Service report, we have updated our domestic production view for Bolivia, and the future balance between domestic demand and exports to Argentina and Brazil. In addition, we have assessed YPFB’s commercial agreements in Brazil and future Brazilian regional demand for Bolivian gas.