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Govt. Pushes Natgas Single Tariff Plan - Bolivia

Published: Wednesday, March 29, 2000 0:00 (GMT -0400)More news from Bolivia

By Archives  / Business News Americas

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olivia's government is continuing its plan to promote a unified "stamp" rate for natural gas transport, as a condition for the construction of a new pipeline in the country, a plan which is being considered by Brazil's state-controlled oil company Petrobras, economic development minister Jose Luis Lupo said.

Currently Bolivia's domestic transport rate is US$0.42 per cubic meter, while for exported gas the rate is US$0.18 per cubic meter. The government promotes a plan to unify both rates with a single US$0.24 per cubic meter rate.

However, the agreement must be accepted by Bolivian pipelines company Transredes (controlled by Enron) and gas producers, which are currently defining their costs. The government cannot legally impose its point of view.

Lupo said the new stamp rate would also allow the replacement of liquefied petroleum gas (LPG) as the most used energy source in the country, by bringing down the price of natural gas.

Petrobras is considering the construction of a new pipeline that would run parallel to the existing Yabog pipeline to transport gas production to the border with Brazil from the San Alberto and San Antonio fields. Transredes has tried to convince Petrobras to wait for the execution of its transport capacity expansion plans instead of building a new pipeline.

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