Published in The Nation .
From July 15 until the end of next year, the Argentine government will pay for Bolivian gas 60% more than they currently pay. After that date, to be seen. In contrast, Argentina, Bolivia granted the ability to quadruple gas purchases over the next 20 years.
Bolivian gas, which currently is 5% of total local consumption, is one of the tools to which the Government resorted to remedy the shortage was the lack of investment in gas exploration, affected by frozen tariffs before the crisis.
Those are the main certainties left yesterday signed the agreement the presidents Néstor Kirchner and Evo Morales. Another is that although the agreement does not arise, but can be inferred from the guidelines of Government, is that higher costs will not be transferred to residential users.
lack of definition, for now, refer to the domestic market. What happens to fuel when traveling on the Argentine pipeline? Who will pay the higher price of gas paid now?, Were the main questions became entrepreneurs yesterday.
now for Bolivian gas paid $ 3.50 a million BTU (thermal units of measure), which is then sold in the domestic market at a value of around $ 1.50. For now, companies that are responsible for this operation, Repsol YPF and Petrobras-run the business at a loss and offset other more profitable.
Now that operation is in the hands of the state Enarsa. Will the company created by government initiative which will market the fuel. Clear that in order to sell must first buy, and for that we should have to do it. In other words, must be endowed funds to the state company to buy the gas at the border.
Then, it will have to choose between selling at the current price -1.50 U.S. $ - and bear the loss, or assume an entrepreneurial role and resell the gas to a profit. In this case, you need to find a buyer willing to transact at that price. Provider
term
The agreement not only sets a price, but also expands the volume of purchase. "You have to take it positively. Argentina need to buy additional quantities of gas at present. We can think of a pipeline and extent clarifies the Argentine energy future. Bolivia is our alternative supply," said the former secretary Jorge Lapeña Energy. The former official also stressed the possibility of planning, now, the delayed gas pipeline in the Northeast, plans to build Techint with some participation of Repsol YPF.
Not everyone sees it as: "This is the worst deal that has made Argentina after losing the Banda Oriental. You will be transferred to Bolivia over 400 million dollars without justification," said an energy consultant.
One of the points still remain clear is what the formula used to update the price of fuel. "The agreed formula should be competitive with the price of alternative fuel such as fuel oil, "said Laperriere.
The agreement, even without entering into force, and began to raise critical gas-bearing provinces. Yesterday we heard the views of Neuquén, the main producer of gas, and Salta." Argentina must have a policy to grow its reserves, not its export levels, "said the governor of Salta, Juan Carlos Romero. His colleague Neuquén, Jorge Sobisch, also was unhappy." The decision to import gas at 4 or $ 5 will an inevitable impact on consumers. Start with $ 5 is very bad for the economy, "he argued. The MP and former minister of the province said Joseph Brightness is an agreement unfavorable national watershed. "Can you imagine what we can think of a local producer who receives $ 1.50 and see that Bolivia will pay 5?. This goes against the investment," he said.
Will Bolivian gas secured the country for 20 years after the agreement? "Argentina promised gas to Chile, and when lacking, is tired of restrict exports," said one analyst.
From July 15 until the end of next year, the Argentine government will pay for Bolivian gas 60% more than they currently pay. After that date, to be seen. In contrast, Argentina, Bolivia granted the ability to quadruple gas purchases over the next 20 years.
Bolivian gas, which currently is 5% of total local consumption, is one of the tools to which the Government resorted to remedy the shortage was the lack of investment in gas exploration, affected by frozen tariffs before the crisis.
Those are the main certainties left yesterday signed the agreement the presidents Néstor Kirchner and Evo Morales. Another is that although the agreement does not arise, but can be inferred from the guidelines of Government, is that higher costs will not be transferred to residential users.
lack of definition, for now, refer to the domestic market. What happens to fuel when traveling on the Argentine pipeline? Who will pay the higher price of gas paid now?, Were the main questions became entrepreneurs yesterday.
now for Bolivian gas paid $ 3.50 a million BTU (thermal units of measure), which is then sold in the domestic market at a value of around $ 1.50. For now, companies that are responsible for this operation, Repsol YPF and Petrobras-run the business at a loss and offset other more profitable.
Now that operation is in the hands of the state Enarsa. Will the company created by government initiative which will market the fuel. Clear that in order to sell must first buy, and for that we should have to do it. In other words, must be endowed funds to the state company to buy the gas at the border.
Then, it will have to choose between selling at the current price -1.50 U.S. $ - and bear the loss, or assume an entrepreneurial role and resell the gas to a profit. In this case, you need to find a buyer willing to transact at that price. Provider
term
The agreement not only sets a price, but also expands the volume of purchase. "You have to take it positively. Argentina need to buy additional quantities of gas at present. We can think of a pipeline and extent clarifies the Argentine energy future. Bolivia is our alternative supply," said the former secretary Jorge Lapeña Energy. The former official also stressed the possibility of planning, now, the delayed gas pipeline in the Northeast, plans to build Techint with some participation of Repsol YPF.
Not everyone sees it as: "This is the worst deal that has made Argentina after losing the Banda Oriental. You will be transferred to Bolivia over 400 million dollars without justification," said an energy consultant.
One of the points still remain clear is what the formula used to update the price of fuel. "The agreed formula should be competitive with the price of alternative fuel such as fuel oil, "said Laperriere.
The agreement, even without entering into force, and began to raise critical gas-bearing provinces. Yesterday we heard the views of Neuquén, the main producer of gas, and Salta." Argentina must have a policy to grow its reserves, not its export levels, "said the governor of Salta, Juan Carlos Romero. His colleague Neuquén, Jorge Sobisch, also was unhappy." The decision to import gas at 4 or $ 5 will an inevitable impact on consumers. Start with $ 5 is very bad for the economy, "he argued. The MP and former minister of the province said Joseph Brightness is an agreement unfavorable national watershed. "Can you imagine what we can think of a local producer who receives $ 1.50 and see that Bolivia will pay 5?. This goes against the investment," he said.
Will Bolivian gas secured the country for 20 years after the agreement? "Argentina promised gas to Chile, and when lacking, is tired of restrict exports," said one analyst.