Uruguay & Bolivia Sign Gas Sales Agreement
BNAmericas
Uruguay's energy and mines minister José Ignacio Villar signed an agreement with his Bolivian counterpart Guillermo Torres on Sunday to buy 150,000 cubic meters of gas a day (cm/d) through Argentina, local newspapers reported.
The agreement considers two stages, the first involving the sale of 150,000cm/d of gas to a power plant in Uruguay in the short term, and the second stage for larger volumes of gas from 2006, when the proposed gas pipeline linking Bolivia and northwest Argentina will expand transport capacity in the region.
Sales of Bolivian gas to Uruguay could come to 4mcm/d from 2006, Bolivia's deputy hydrocarbons minister Freddy Escobar told BNamericas last week. Argentina is Uruguay's main supplier at present, but its energy exports have been restricted this year as it comes to terms with domestic shortages.
Uruguay needs the gas urgently because natural gas use by large industries is currently restricted, Villar said. "We have a certain deficit. We could possibly solve this problem in Argentina - we are considering the option of covering [the deficit] from Bolivia in meetings with the Argentine authorities," he added.
Because of low water levels and the restriction of electric power imports from Argentina, Uruguay's state-owned power company UTE has been forced to generate power at its 220MW La Tablada diesel-fired plant and import power from Brazil.
Generating its own power from natural gas would be a cheaper option, and UTE is currently considering bids for a turnkey contract to build a 350-400MW combined cycle thermoelectric power plant that would take 26 months to build and could use Bolivian gas.
Furthermore, Villar said Brazil's federal energy company Petrobras is interested in building another thermo plant in Uruguay, and that that plant would need Bolivian gas supplies to be viable. "I can't go ahead with this project if I don't have certainty of supply," he said.
About Business News Americas: Business News Americas is a multilingual news and business information service that covers the most important original stories in 11 different business sectors throughout Latin America everyday. Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports.
Click here for a Free two week trial to our Latin America Oil & Gas information service.
The agreement considers two stages, the first involving the sale of 150,000cm/d of gas to a power plant in Uruguay in the short term, and the second stage for larger volumes of gas from 2006, when the proposed gas pipeline linking Bolivia and northwest Argentina will expand transport capacity in the region.
Sales of Bolivian gas to Uruguay could come to 4mcm/d from 2006, Bolivia's deputy hydrocarbons minister Freddy Escobar told BNamericas last week. Argentina is Uruguay's main supplier at present, but its energy exports have been restricted this year as it comes to terms with domestic shortages.
Uruguay needs the gas urgently because natural gas use by large industries is currently restricted, Villar said. "We have a certain deficit. We could possibly solve this problem in Argentina - we are considering the option of covering [the deficit] from Bolivia in meetings with the Argentine authorities," he added.
Because of low water levels and the restriction of electric power imports from Argentina, Uruguay's state-owned power company UTE has been forced to generate power at its 220MW La Tablada diesel-fired plant and import power from Brazil.
Generating its own power from natural gas would be a cheaper option, and UTE is currently considering bids for a turnkey contract to build a 350-400MW combined cycle thermoelectric power plant that would take 26 months to build and could use Bolivian gas.
Furthermore, Villar said Brazil's federal energy company Petrobras is interested in building another thermo plant in Uruguay, and that that plant would need Bolivian gas supplies to be viable. "I can't go ahead with this project if I don't have certainty of supply," he said.
About Business News Americas: Business News Americas is a multilingual news and business information service that covers the most important original stories in 11 different business sectors throughout Latin America everyday. Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports.
Click here for a Free two week trial to our Latin America Oil & Gas information service.
Most Popular Articles
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- These Factors Helped Brent Oil Price Break Above $85
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Gaz System to Acquire Gas Storage Poland
- Subsea7 Secures Contract to Service Woodside's Trion
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- EIA Boosts USA Crude Oil Production Forecasts
- TotalEnergies to Acquire TLCS Eyeing Bayou Bend CCS Project
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension