Brazil rules out rationing gas to distributors until Thursday

Rio de Janeiro (Platts)--11Apr2006

Brazil won't ration natural gas supplies to the country's gas
distributors until at least Thursday as Bolivian gas exports to Brazil remain
ample despite damaged pipelines, Brazil's energy ministry said late Monday.
In a statement the ministry said that distributors, which had faced 12%
cuts in natural gas supply as of Monday on Bolivian supply concerns, could
rest easy until at least Thursday when cuts may be considered again, depending
on the availability of Bolivian imports.
Earlier Monday Petrobras said it may take up to one week to repair a
broken pipeline in Bolivia that has shut in gas production at the San Antonio
and Margarita fields there. Combined production from those fields, which is
mostly for export, usually runs about 15 million cubic meters per day.
Petrobras had earlier expected repairs to take up to 30 days.
Bolivia has been maintaining gas exports of as much as 21 million cu m/d
to Brazil, down from a normal 26-27 million, but it has fully cut its daily
supply of 4.5 million cu m/d to Argentina, according to Bolivian press reports
cited Bolivia's state-run YPFB CEO, Jorge Alvarado, as saying late Monday.
Bolivia sought to keep up exports to Brazil, while cutting them to
Argentina, because Bolivia has a long-term, 20-year supply contract with
Brazil, while its contract to supply Argentina is temporary, Alvarado said.
Brazil's energy ministry ordered gas rationing last Friday following
pipeline ruptures in Bolivia, caused by heavy rains, on April 2. Brazil
ordered a 51% cut in natural gas supply to Petrobras refineries in Brazil, a
72 percent cut in supply to thermoelectric generators, and up to 12% less gas
for the distributors that sell about four-fifths of the country's 52 million
cu m/d of gas.
The cuts to refineries and thermal plants will remain in effect, the
ministry said, while every effort is being made to avoid cutting supply to
distributors.

 

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