Unique-Argentina negotiating fuel imports from Bolivia, Chile as warmth wave stokes demand

By Lucinda Elliott and Alexander Villegas

MONTEVIDEO/SANTIAGO (Reuters) – Bolivia and Chile are in talks to restart fuel exports to Argentina amid a surge in demand spurred by a summer time warmth wave, underscoring the problem for the federal government in Buenos Aires because it seems to turn into vitality self-sufficient.

“We’re in a negotiation with Argentina to create a spot contract,” the chief of Bolivia’s state-run vitality agency YPFB, Armin Dorgathen Tapia, instructed Reuters on Friday by cellphone. The talks are beforehand unreported.

Chilean authorities on Friday additionally stated in a press release to Reuters that they count on to achieve a brand new settlement with Argentina to provide the nation’s distant north. As much as 2.5 million cubic meters of pure fuel might be shipped per day via September, the vitality ministry stated.

Pure fuel exports from Bolivia to Argentina resulted in September after nearly twenty years, as Argentina ramped up home manufacturing from its enormous Vaca Muerta shale formation and began shifting in the direction of turning into a web vitality exporter.

Bolivia’s fuel manufacturing has additionally been dwindling over the past decade with few new discoveries. Since final 12 months, Yacimientos Petroliferos Fiscales Bolivianos (YPFB) now not has an lively provide contract with Argentina.

However excessive warmth that struck Buenos Aires and the encompassing areas this week has led to an uptick in vitality demand, as Argentines crank up air conditioners and followers, placing stress on home provides.

Argentina’s state vitality agency Enarsa confirmed to Reuters on Friday that it was “open to alternate options” ought to the nation have to import fuel to fulfill demand. Argentina will not be presently importing fuel from its neighbors, the agency stated.

Bolivia has the capability to ship fuel to Argentina as a part of a possible new short-term spot contract lasting between six and 12 months, the YPFB president stated.

Bolivia’s fuel provides are already dedicated to neighboring Brazil as a part of a latest deal via to 2027 however some purchasers “do not demand as a lot, so we could be versatile,” he stated.

YPFB added that Bolivia may even generate electrical energy of its personal to promote again to Argentina.

“There are answers,” Tapia added.

YPFB cautioned, nevertheless, that an excellent debt as a result of agency from Argentina sophisticated future transactions. Argentina was on account of make a fee on Jan. 10 totaling $10.6 million for provides obtained, in line with YPFB, however had not carried out so.

“Clearly it’s tough for us to have the arrogance to have the ability to ship fuel to Argentina, realizing that they could not pay,” Tapia stated.

A spokesperson for Argentina’s Enarsa stated there was no debt excellent with YPFB, however relatively a discrepancy over the quantity of fuel Bolivia offered through the contract interval. Talks to resolve which can be on account of proceed subsequent week, the particular person added.

Argentina’s vitality ministry didn’t instantly reply to a Reuters request for remark.

The nation, South America’s No. 2 financial system, has been quickly ramping up fuel output and is making multi-billion greenback investments in pipelines and longer-term plans for liquefied pure fuel (LNG) terminals to permit fuel shipments abroad.