Bolivia and Chile are currently in negotiations to resume gas exports to Argentina in response to increased demand prompted by high summer temperatures. This poses a challenge for the Buenos Aires government in its quest for energy self-sufficiency.
We are discussing a spot contract with Argentina, stated Armin Dorgathen Tapia, the head of Bolivia's state-owned energy company YPFB, in an exclusive interview with Reuters on Friday. The ongoing discussions have not been previously disclosed.
Meanwhile, Chilean officials announced on Friday that they anticipate finalizing a new agreement with Argentina to supply gas to the northern regions of the country. They project a potential daily export of up to 2.5 million cubic meters until September.
After nearly two decades, Bolivia's gas exports to Argentina had ceased as Argentina boosted its domestic production from the extensive Vaca Muerta shale reserve, aiming to shift toward being a net energy exporter.
Despite Bolivia's dwindling gas production in recent years with limited new findings, YPFB no longer maintains an active supply contract with Argentina since last year.
However, the recent intense heatwave in Buenos Aires and neighboring areas has escalated energy demand, prompting Argentines to increase air conditioning usage, straining local energy resources.
Given the situation, Argentina's state energy company Enarsa confirmed its readiness to explore alternative gas imports to meet the surge in demand, though currently, Argentina does not import gas from its neighbors.
YPFB President mentioned that Bolivia could potentially enter into a short-term spot contract lasting six to twelve months to supply gas to Argentina, as some clients in Brazil might be willing to adjust their demands, allowing for flexibility.
Tapia also indicated that Bolivia could explore generating electricity for export to Argentina, presenting viable solutions to the current situation.
Nonetheless, YPFB expressed concerns about an outstanding debt owed by Argentina, which could complicate future transactions. Although Argentina denied any pending debt to YPFB, stating a disagreement over the gas supplied during the contract period. Resolving this issue is a topic for upcoming discussions.
Argentina's energy ministry did not respond immediately to Reuters' request for comment. The country, as the second-largest economy in South America, is intensifying its gas production efforts, with substantial investments in pipelines and long-term plans for liquefied natural gas (LNG) terminals to facilitate gas exports.