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Brazil won't ration natural gas supplies to the country's



Working in pipeline

By Elio Ohep
Petroleumworld
CARACAS
Petroleumworld.com 04 11 06

Despite damaged pipelines in Bolivia, Brazil won't ration natural gas supplies to the country's gas distributors yet, as Bolivian gas exports to Brazil remain
ample, Brazil's energy ministry said in a statement late Monday.

The ministry statement said that natural gas in the Bolivian pipeline to Brazil had to cut on 12% and only on Thursday the availability will be evaluated again, and cuts may be considered.

Monday Petrobras said it may take up to one week to repair a broken Bolivian gasline that has shut gas production of about 15 million cubic meters per day on its San Antonio and Margarita fields.

Combined production from those fields, which is mostly for export, usually runs about 15 million cubic meters per day. Petrobras had earlier expected repairs to take up to 30 days.

Since the problem last week, Petrobras has been maintaining gas exports of as much as 21 million cu m/d to Brazil, down from a normal 26-27 million.

However, Petrobras has fully cut its daily supply of 4.5 million cu m/d to Argentina, according to Bolivian press reports of late Monday.

Following the Bolivian pipeline ruptures last Friday, Brazil's energy ministry ordered a 51% cut in natural gas supply to Petrobras refineries in Brazil, a 72 percent cut in supply to thermoelectric generators, and up to 12% less gas for the distributors that sell about four-fifths of the country's 52 million cu m/d of gas.

The ministry said every effort is being made to avoid cutting supply to
distributors.

According to Bolivian press reports cited Bolivia's oil company YPFB CEO, Jorge Alvarado, said Monday, that Bolivia sought to keep up exports to Brazil, while cutting them to Argentina, because Bolivia has a long-term, 20-year supply contract with Brazil, while its contract to supply Argentina is temporary.

- Elio Ohep, editor@petroleumworld.com; 58 412 996 3730, Caracas.

Petroleumworld News 04 10 06


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