Bolivia's Minister of Hydrocarbons Luis Alberto Sanchez and Paraguay's Minister of Public Works and Communications Arnoldo Wiens signed a Memorandum of Understanding to build a gas pipeline between their respective countries, and to commercialize Liquefied Petroleum Gas (LPG). The agreement, also, foresees a partnership between the Bolivian State Oilfields (YPFB) and Petropar.
The YPFB, created in 1936, has become one of Bolivia's major companies, especially after 2006 when President Evo Morales nationalized oil resources.
Minister Sanchez said that the gas pipeline could depart either from Puerto Suarez or from the Bolivian Chaco. Additionally, as part of the partnership between YPFB and Petropar, Bolivian LPG cylinders could be sold in Paraguay.
"We have worked with presidents Mario Abdo Benitez and Evo Morales on an energy integration line ... to build a pipeline by YPFB either through Puerto Suarez or from Villamontes to the Paraguayan Chaco and to be gas suppliers in the medium term. This would create a new market for Bolivian gas. In the short term, there is a possibility of building gas networks in Paraguay and it is possible that, while it is being built, we can supply with Liquefied Natural Gas to Paraguay," Minister Sanchez explained.
On the other hand, Wiens assured that the memorandum revalidates instructions, issued during a meeting held in Asuncion in August, by the presidents of Bolivia and Paraguay.
The agreement includes Bolivian advice to exploit new hydrocarbon areas near the border as well as on Paraguayan soil, and also to develop feasibility studies on the development of infrastructures and gas networks, Wiens said.