Bolivia will send less gas to Argentina during the upcoming Southern Hemisphere winter, an Argentine government spokesman told Reuters on Friday, citing a “very marked” production decline and bigger domestic demand.
Argentina has for years been dependent on Bolivian gas for use in houses and power plants, though it hopes a new gas pipeline from the Vaca Muerta shale formation will allow it to slowly start supplying it domestically from 2023.
Argentina has been looking for alternative gas supplies after being hit hard by rising liquefied natural gas (LNG) costs linked to the war in Ukraine.
In April, the two countries struck a deal for Bolivia to send around 14 million cubic meters of natural gas per day to Argentina or more during the winter of 2022.
The Argentine government spokesman on Friday confirmed that imports from Bolivia would be reduced, without specifying figures. Local media reported the amount could fall to half or less next year.
“They offered less, they asked for more and they were negotiating. They (Bolivia) have a very marked decline in production and commitments made with Brazil and Argentina, plus growth in the domestic market,” the spokesperson added.
Bolivia’s Energy Ministry did not immediately respond to a request for comment.