LatAmOil: Bolivian gas supply cuts may lead Petrobras to import more LNG

Brazil’s national oil company (NOC) Petrobras has said it may need to import more LNG due to an unexpected cut in shipments of natural gas from Bolivia.

Petrobras noted in a statement that supply concerns had arisen as a consequence of the fact that YPFB, the Bolivian NOC, had reduced the volume of gas flowing to Brazil by 30% this month. YPFB is supposed to be delivering 20mn cubic metres per day of gas under the terms of its contract with Petrobras, the statement said, but it has only been delivering 14 mcm per day.

The cuts put the Brazilian company in a position of needing to find another way to cover domestic gas demand, the statement said. “This 30% decrease was not foreseen and implies the need for additional imports of LNG to meet Petrobras’ commitments of gas supply,” it commented.

Petrobras also stated that it intended to respond to YPFB’s unanticipated reductions with “fitting actions” but did not say what these might entail.