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Bolivia - Natural gas sector policies and issues (Inglês)

The major conclusions and recommendations of this report are as follows: 1) to meet anticipated requirements for the domestic and export markets, especially to Brazil. Bolivia's proven reserves will need to be increased through further field delineation and exploration of the country's considerable potential; 2) the terms for natural gas in exploration and production contracts need to be developed more thoroughly; 3) production planning should be improved so as to avoid wasteful flaring of gas and the excessive focus on liquids recovery at the expense of overall production optimization; 4) the major issue in domestic gas utilization is the need for a proper costing of gas in power use; 5) compressed natural gas (CNG) use represents an economically attractive opportunity for Bolivia that could replace a significant proportion of liquids use in transport; 6) opportunities for development of Bolivia's gas resources will be enhanced by the broadest possible growth and liberalization of gas markets within Cono Sur; 7) Bolivia must continue to treat Argentina as a major influence on its gas sector; 8) Bolivia's focus on developing the Brazilian gas market is justified; 9) schemes to export Bolivian gas to the north of Chile do not appear to be economically attractive; 10) Bolivia's domestic gas pricing should distinguish between the commodity value of gas and the costs of transmission and distribution; 11) two-part transmission and distribution tariffs should be established, with both a fixed reservation (demand) charge and variable (usage) charge; and 12) to place an increased institutional focus on natural gas, a single national gas transmission company should be set up through the merger of currently separate divisions of Yacimientos Petroliferos Fiscales Bolivianos (YPFB).

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