Bolivia cuts Brazil gas volumes by 30pc: Petrobras
Bolivian state-run YPFB reduced natural gas shipments to Brazil by 30pc this month, potentially increasing the need for LNG imports, Brazilian state-run oil and gas company Petrobras said.
YPFB under an ongoing gas supply agreement is supposed to supply Petrobras with 20mn m³/d, which is used to meet gas supply agreements in Brazil. A 30pc reduction in contractual volumes is about 6mn m³/d.
Petrobras disclosed the reduced gas flows when asked by Argus. Petrobras said YPFB in May dropped the gas supply for Brazil by 30pc below the contract.
"This 30pc decrease was not foreseen and implies the need for additional imports of LNG to meet Petrobras' commitments of gas supply," Petrobras said in an emailed statement.
A similar decline also occurred last month, according to trade data. Argus data produced from oil and gas regulator ANP showed Bolivian gas flows to Brazil fell to 7.5mn m³/d in the week of 3-9 April from an average of 19mn m³/d during previous months. The most recent data showed a 16.7mn m³/d flow of Bolivian gas to Brazil on 9-15 May. The data is preliminary and subject to updates.
YPFB will face "fitting actions" because of the below-contract supplies, Petrobras said without disclosing specific actions.
YPFB declined to immediately respond to a request for comment.
The decrease in Bolivian gas shipments is a concern for Brazil market participants since Bolivian supplies of 20mn m³/d last year accounted for 22pc of Brazil's gas demand.
The decrease in Bolivian volumes to Brazil could be the result of negotiations between YPFB Argentina's state-controlled Ieasa to supply more gas during the winter in the southern hemisphere. Dwindling upstream production has curbed Bolivian pipeline flows over the past year, which also could explain the drop in gas shipments to Brazil.
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US job growth nearly halved in April: Update
US job growth nearly halved in April: Update
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Austrian regulator consults on gas tariff changes
Austrian regulator consults on gas tariff changes
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US job growth nearly halved in April
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