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Billion-Dollar Deal: Bolivia Targets Brazil and Will Prioritize Natural Gas Sales. The Aim Is to Expand Fuel Supply Through the Bolivia-Brazil Gas Pipeline (Gasbol) System.

Written by Roberta Souza
Published on 07/03/2023 at 19:31
Updated on 07/03/2023 at 20:03
Bolívia, Brasil, gás
Foto: Reprodução adaptada soutocorrea.com.br
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In 2022, The Bolivian Government Had a 49% Greater Profit in the Export of Gas to Brazil and Argentina

With a 49% greater profit in 2022 from the export of natural gas to Brazil and Argentina, the Bolivian government aims to meet the demand generated by Mato Grosso do Sul. Thus, Bolivia aims to expand the fuel supply through the Bolivia-Brazil Gas Pipeline (Gasbol).

This expansion may also lead to greater tax revenue for the Brazilian state, since the fuel is nationalized in Corumbá. According to Correio do Estado, Gasbol generates over R$ 1 billion per year for Mato Grosso do Sul through tax collection.

Additionally, internally, the Gas Company of Mato Grosso do Sul (MSGás) aims to expand its market and is currently in a bidding process to hire a commercial consultancy in order to increase its client base in Campo Grande. This process is expected to be completed by March of this year.

MSGás Has a R$ 50 Million Expansion Project That Includes the Creation of a Line Between the Capital and Sidrolândia

MSGás serves 27 industries in Campo Grande and Três Lagoas. Since 2022, the company has been conducting an expansion project, valued at R$ 50 million, to create a connection between the Capital and Sidrolândia. If the fuel supply increases, the plan is to create another branch to pass through Maracaju and Rio Brilhante and reach Dourados.

Gasbol has the capacity to transport 30 million m³ of natural gas per day and has a priority contract only with Petrobras. The Brazilian state-owned company has a contract to purchase 20 million m³/day, valid until 2025. However, currently, Bolivia has been facing difficulties in ensuring this amount and can contractually provide 14 million m³/day without incurring penalties.

Meeting for the Expansion of Natural Gas Supply from Bolivia to Mato Grosso do Sul

In Brasília, a meeting was held between the head of Semadesc, Jaime Verruck, and the Minister-Counselor of the Bolivian Embassy, Horácio Villegas. The focus was to reinforce, on behalf of the government of Mato Grosso do Sul, the agreements with the Bolivian government on matters such as the expansion of natural gas supply.

“We want to increase the sale of natural gas in Brazil via Gasbol. Today, there is an average idle capacity of 30% in the pipeline. For this, it is necessary to expand the supply of natural gas, with the activation of MSGás’s pipeline in Corumbá. We also discussed sanitary control at the border, and an official meeting was scheduled in Corumbá to address these and other issues, such as the integration of the Bolivia-Brazil railway and the bi-oceanic railway route, as well as hydro-transport and port integration on the Paraguay River,” explained the secretary.

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Roberta Souza

Author for the Click Petróleo e Gás portal since 2019, responsible for publishing over 8,000 articles that have garnered millions of views, combining technical expertise, clarity, and engagement to inform and connect readers. A Petroleum Engineer with a postgraduate degree in Industrial Unit Commissioning, I also bring practical experience and background in the agribusiness sector, which broadens my perspective and versatility in producing specialized content. I develop content topics, disseminate job opportunities, and create advertising materials tailored for the industry audience. For content suggestions, job vacancy promotion, or advertising proposals, please contact via email: santizatagpc@gmail.com. We do not accept resumes

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