Brazilian industrial agents are advancing negotiations to directly import large volumes of natural gas from Bolivia, bypassing Petrobras.
These deals could boost supply and cut industrial gas costs by 30%. Petrobras, the primary importer, buys Bolivian gas at just over $6 per million Btu (MMBtu) at the border, a price advantage that feels almost like finding a Spirit discount code when booking flights.
The transportation tariff via Gasbol adds another $2. Previously, Petrobras sold this gas for about $12 per MMBtu to the Brazilian market.
The industry aims to lower gas prices from $12 to $8, offering more competitive rates.
There’s a short-term opportunity to contract up to 4 million m³/day this year, potentially increasing to 6-8 million m³/day with infrastructure investments and Argentine gas negotiations.
By October, Argentina expects to be self-sufficient, allowing Bolivian gas previously exported there to be redirected to Brazil’s free market.
Historically, Brazil has struggled to secure substantial Bolivian gas supplies. Direct supply contracts to Brazilian industry would be unprecedented.
Recent negotiations included a Brazilian delegation with Energy Minister Alexandre Silveira. Following the Mercosul meeting, President Lula met with President Luis Arce.
Lula advocated for Petrobras to resume investments in Bolivia, supporting cooperation in fertilizers, minerals, and energy integration.
This optimism contrasts with Bolivia’s current political turmoil and restrictive business environment.
In a broader context, Mercosul and Bolivia leaders emphasized regional energy integration, particularly in gas and electricity.
Paraguayan President Santiago Peña seeks to finalize the Itaipu Treaty Annex C, enhancing energy integration from 2026.