Bolivia gas and power long-term outlook H2 2018: win-win GSA renegotiation with Argentina

Declining domestic gas production, Brazil's pre-salt and Argentina's Vaca Muerta are reshaping Bolivia's position in the Southern Cone. This requires creative ways to maximize the value of existing gas production – as shown in the renegotiation of the GSA with Argentina signed on 14 February. In this Southern Cone Gas and Power Service report, we have updated our views on the Margarita, San Alberto, San Antonio and Incahuasi gas fields. We also analyse how Argentina's increasing production and lack of offtake in summer is driving Bolivia’s future market balance. We have zoomed in to identify which regions Bolivian gas will continue supplying in both Brazil and Argentina. Finally, we provide analysis of new prices and estimated revenues resulting from the recent contract addendum between YPFB and IEASA.