LA PAZ – Bolivia will start receiving the first additional payments within 30 days from sales of natural gas liquids to Brazil, officials said Thursday.
The payments are included in an addendum to the gas contract scheduled to be signed on Friday in Rio de Janeiro by Bolivian state-owned oil company YPFB CEO Carlos Villegas and Petrobras chief Jose Sergio Gabrielli.
Under the terms of the contract, Bolivia will get an additional $1.2 billion to $2.16 billion by 2019, estimates published Thursday in the Bolivian press said.
YPFB, which has not confirmed the figures, said in a statement that it planned to consolidate the payments for gas liquids that Bolivia exports to Brazil, implementing the valuation for liquefied gas agreed to by the countries in 2007 and approved by Bolivian President Evo Morales and his Brazilian counterpart, Luiz Inacio Lula Da Silva.
The payments received by Bolivia for sales of natural gas liquids to Brazil “will be set year by year,” depending on the international price of gas and the volume purchased by the neighboring country, a YPFB spokesman told Efe.
YPFB and Petrobras agreed last year to payments of $100 million to $180 million per year for gas sold from 2007 until the contract’s end in 2019.
The updating of the agreement calls for construction of a liquefied natural gas, or LNG, plant in Rio Grande, which is located in the eastern province of Santa Cruz.
LNG is natural gas that has been supercooled, condensing it into a liquid that takes up to 600 times less space than in its gaseous state.
LNG can can be transported over long distances from countries that have large supplies of natural gas to those where the fuel is in demand.
Petrobras expects to pay $100 million for the first eight invoices, which are from 2007, within 30 days, once the addendum has been signed and an agreement on volume reached, YPFB said.
Funds generated by the additional payments will be used to finance the development of Bolivia’s domestic oil industry, YPFB said. EFE