Bolivia
demands “fairer” prices for gas sold to neighbours
Mercosur News
Montevideo
Petroleumworld.com
02 23 06
The
Bolivian government ratified Tuesday its decision to increase
the price of natural gas exported to Brazil and Argentina because
it considers them “unfair”.
Hydrocarbons minister Andres Soliz and the president of Bolivia’s
oil company (YPFB) Jorge Alvarado made the official announcement
in La Paz.
Currently
Brazil pays Bolivia 3.23 US dollars for each million BTU and Argentina
3.18 US dollars.
“Bolivia
has all the right to demand negotiations for better prices with
the countries we’re supplying with our natural gas”,
said Mr. Alvarado.
“We consider current prices to be unfair and must necessarily
be reviewed”, added Mr. Soliz.
Both officials
added that following talks with Venezuela’s Minister of
Energy and Petroleum, Rafael Ramirez, it was quite clear that
“Venezuela will not supply subsidized gas to Brazil and
Argentina” as was advanced by the Brazilian press.
In an official
release from Caracas Venezuela’s Hydrocarbons minister denied
his country had offered subsidized natural gas to Brazil adding
it was a “misinformation” and that when the giant
pipeline extending throughout South America is finished, “Venezuelan
gas will cost 5 US dollars per million BTU”.
“This
is only part of a stage of pressures to try and “soften”
Bolivia when President Morales is about to begin gas price negotiations
with its neighbours”, said YPFB president Jorge Alvarado.
As to the
future prices for natural gas, “it would be a gross mistake
to advance through the press the prices from which we are willing
to begin negotiations with neighbouring countries”.
However Mr.
Soliz was cautious as to the coming price negotiations for natural
gas since Brazil has offered to jointly build a huge petrochemical
complex in the Bolivian/Brazilian border, which “we have
to be careful is not tied to frozen gas prices”.
“We’re
always tempted with great offerings for the future, but…currently
it seems they might be trying to extract disadvantageous prices
for Bolivia. So that’s why we have to be careful at present
and in the future”, highlighted Mr. Soliz.
As to the
energy sector in Bolivia, Mr. Soliz said that the President Evo
Morales administration will not sign any documents or fix prices,
“until the rules of the game have been reviewed” in
the hydrocarbons sector.
President
has promised to respect foreign corporations’ assets but
insists in a greater government control over the country’s
natural gas reserves.
Bolivia’s
reserves are the second most important in Latinamerica behind
Venezuela.
Mercosur
02 22 06
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