Bolivia and Brazil has reached an agreement on how much Brazil will pay for Bolivian natural gas, resolving a year’s long disputed issue which has divided neighbours.
Brazil keen to settle the dispute as it depends on Bolivia for 50 percent of its daily gas supply. As the price was the major obstacle between two, Brazilian officials agree pay nearly 300 percent more for the Bolivian gas.
The recent deal raised the hope to Brazil’s state oil company, Petroleo Brasileiro SA, for more investment in Bolivia. Company has vast natural gas operations in Bolivia, and Brazil buys more than 900 million cubic feet of Bolivian natural gas per day, paying slightly more than $4 per million British thermal units on average. Petroleo will also import oil to the Brazil through its pipelines from Bolivia.
South America’s biggest economy, Brazil, is also working on other energy sources, but lack of oil’s sufficient substitute and to meet its growing necessity for energy, Brazil is trying to craft a new relationship with Bolivia as it having huge crude oil reserve.
Via: BBC
