Bolsonaro denounced that Bolivia had reduced its gas supply to Brazil by 30% to sell it to Argentina

Bolsonaro denounced that Bolivia had reduced its gas supply to Brazil by 30% to sell it to Argentina

Brazilian President Jair Bolsonaro has posted a video on his social media in which he denounces that Bolivia has reduced the gas it sells to Brazil by 30% to prioritize supplies to Argentina. . “It seems orchestrated”, He repeated. His remarks come in the context of negotiations with the two neighboring countries to ensure energy in winter, a sensitive subject due to the increase in international prices and the reduction in world supply due to the Russian invasion of the Ukraine.

Bolivia cut off 30% of our gas to deliver it to Argentina. How did Petrobras act in this case? Everything seems to be orchestrated. If you have to buy gasoline elsewhere, it’s five times more expensive. Who will pay the bill? Who will be responsible? This is a deal that seems to me to be orchestrated to favor you know who,” Bolsonaro said.

Although he did not specify who would benefit, it was understood that the person in question would be the former president and opponent of his government. Luiz Inacio Lula da Silvawith whom he will compete in the elections on October 2.

According to her statements, the management of the state company Petrobras, with which she is in conflict over the increase in the price of fuel, would also be involved in the plan aimed at harming her. Bolsonaro accuses Petrobras of not stopping increases under pressure from international shareholders. The video was recorded just before deciding on the company’s second change of chairmanship in 40 days, which happened yesterday.

almost two months ago Martin GuzmanMinister of Economy, traveled to Brazil to meet his peers and move forward in negotiations so that Brazil cedes part of its purchase to Bolivia for the benefit of Argentina, because it would be better supplied this year by hydraulic dams.

Martín Guzmán in Brazil, early April

Through an official communication, Guzmán assured that the talks had been successful and that Brazil would “guarantee energy security in Argentina in winter”. “Lo que logramos con Brasil y Bolivia le da a la Argentina mayor certeza y tranquilidad en el campo energético”, enfatizó Guzmán al terminar la reunión bilateral, que, según aseguró, fue “excellent por la agenda de integración que marca hacia delante para nuestros the countries”.

After consulting with THE NATION, confirmed from the government that Bolivia has not increased gas shipments to the country. Moreover, there would be no infrastructure to transport all the cubic meters of gas, which implies a 30% reduction in exports to Brazil. Even Ieasa, the state-owned company in charge of gas imports, recently acquired 15 additional LNG tankers to guarantee supply.

These last months, the government has asked neighbors for help and put in place a busy international program to secure a few million additional cubic meters of gas for the winter. In particular, he entered into negotiations with Chile, Bolivia and Brazil – and a network of reproaches opened up to friends and less friends, with promises for the future.

The supply agreement, signed with Bolivia in 2006, specified that the neighboring country should send about 14 million cubic meters per day. This year they have warned that they could not even meet 10 million because their deposits are down and because they have other commitments – with better prices – to meet, such as those of Brazil.

Faced with this alert, Argentina decided to include Jair Bolsonaro in the gas conversation with a reproach: “We helped them last year when they needed gas. Now it’s their turn to help us,” an official source said.

In 2021, Brazil experienced the worst drought in 91 years, which reduced energy production from hydroelectric plants. Argentina “came to the aid” of Brazil and increased its energy exports.

Daniel scioliformer governor of the province of Buenos Aires and current ambassador to Brazil, played a leading role in the negotiations and managed Guzmán’s meetings during his visit. “Mission accomplished”, he said after the meetings. “That Brazil guarantees Argentina’s energy security by sending electricity as needed between May and September is a goal achieved for the coordinated work that we carried out from the Embassy with Minister Guzmán in front of the Brazilian authorities” , he pointed out.

Minister Guzmán in Brazil, early April
Minister Guzmán in Brazil, early AprilMECON

Then, on a visit to Argentina in early April, Bolivian President Luis Arce has promised to maintain last year’s volumes and even send more if conditions are met (that it has production and that Brazil does not need it). As LA NACION learned at the time from official sources close to the negotiation, Bolivia will deliver in winter (peak period) 14 million cubic meters per day (m3/d), the same volume as in 2021.

However, there will be two prize tiers. For the first 10 million m3/d, between 8 and 9 US$ will be paid per million BTU (English measure used in the sector), while for the remaining 4 million the price is doubled and could reach 18 dollars.

Besides, Bolivia will prioritize Argentina to deliver an additional 4 million gas to reach 18 million volume, if Brazil does not need it, at a price of US$18.

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