Morales signs new gas agreement in Argentina

Argentina will pay 5 US dollars for every million BTU of Bolivian natural gas, up from the current price of 3.20 US dollars, announced the Bolivian embassy in Buenos Aires.

The agreement, following negotiations which started in May, will be officially sealed Thursday when Bolivian president Evo Morales makes his first official visit to Argentina since taking office last January.

Argentina currently imports a daily average of 5 million cubic meters of natural gas from Bolivia, which Argentina pays at 3.20 US dollars but that in international markets sells for 7 to 8 US dollars per million BTU.

When President Morales last May first took control of the country’s hydrocarbons resources he also announced he would be demanding higher prices from its main customers, Brazil and Argentina.

While Brasilia has yet to begin talks with Bolivia on a new price, Argentina quickly arrived to a new understanding. Buenos Aires is anxious to have terms in place before the completion of a new pipeline that will enable it to increase imports of Bolivian gas to roughly 27 million cubic meters per day.

Bolivian Ambassador Roger Ortiz Mercado in Buenos Aires said that the energy agreement reached “goes beyond the setting of prices" since "it’s not multinational corporations that are reaching an agreement but two sovereign countries”.

Morales agenda in Buenos Aires includes the inauguration next to Argentine president Nestor Kirchner, of a sports stadium in the suburb of Hurlingham where a large community of Bolivians live and a massive rally has been programmed.