Bolivian energy crisis continues, protests add to problems

Rio de Janeiro (Platts)--7Apr2006

Bolivia's energy crisis continued Friday to threaten supplies to
neighboring Brazil and Argentina, with shipments of natural gas reduced by
more than a quarter from normal levels of 32 million cubic meters a day, as
rain-damage to pipelines and political unrest in Bolivia's Tarija region shut
in Petrobras and Repsol-operated fields.

Pipeline snags were compounded by escalating civilian protests in the
gas-rich Tarija Department of southern Bolivia, presenting the biggest
challenge yet for leftist President Evo Morales, in office since January,
analysts said. Morales dispatched troops to the Tarija Department Thursday to
take control of gas and oil infrastructure.

Natural gas shipments to Brazil have fallen by at least 5 million cubic
meters/day to about 21 million cubic meters/day, Petrobras said. Gas shipments
to Argentina have fallen by at least 2.5 million cubic meters/day, as
Petrobras has stopped its daily exports to Argentina.

Exports to Argentina could stop entirely as early as Friday, a Bolivian
gas industry source said, while shipments to Brazil could also fall in the
coming days.

Bolivia faces a nationwide oil and fuels shortage, as 20,000 b/d of its
51,000 b/d liquids production is shut in, cutting feedstock for the two
Petrobras-owned refineries in the country. Diesel shipments from Argentina to
Bolivia have been halted due to highway blockades in Tarija.

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