Bolivia gas and power markets long-term outlook 2020

On 18 October, Bolivia elected Luis Arce as its new president for the 2021-2025 period. Arce’s administration will have to deal with major challenges facing the country’s gas industry. First, it must negotiate the post-2020 gas delivery and price to Argentina. The current YPFB-ENARSA gas supply agreement addendum ends in December, so this will be an urgent task as the new president doesn’t take office until the second half of November. Second, Bolivia needs to sign new gas supply agreements in Brazil with other buyers beyond Petrobras. For this, the new administration will have to empower YPFB’s commercial capabilities. And third, it must review the fiscal regime if Bolivia wants to attract exploration investments. Domestic gas production is declining and gas export revenues are vital to Bolivia’s economy.