YPFB, Enarsa to Sign Gas Supply Contract October 19

Bolivia's state oil company YPFB and its Argentine counterpart Enarsa will sign an agreement October 19 in the former's Santa Cruz to increase gas export volumes to Argentina, Bolivia's hydrocarbons ministry said in a statement.

The new contract will entail the export of 27.7Mm3/d over 20 years. Bolivia would begin ramping up its current 7.7Mm3/d gas export to Argentina starting in 2007 and reach the full amount established in the contract by 2010, the statement said.

The increased gas supply would provide Bolivia with US$17bn based on the US$5/MBTU export price established by the late-June bilateral agreement.

The agreement to increase gas supply would clear the way for the tender to build a GNEA gas pipeline between the two countries as well as a liquids separation plant in Bolivia.

The increased gas also would help meet Argentina's growing gas demand, which averages some 120Mm3/d and could grow 9.5% annually in coming years.

The US$5/MBTU export price established in the June agreement will remain in effect until year-end, when a new price will come into effect based on a formula derived from various international market prices.

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