Bolivia’s state-owned oil company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), has announced a significant shift in its role within the regional energy market. Instead of exporting its own natural gas, Bolivia will now transport 4.5 million cubic meters of Argentine gas from the Vaca Muerta field to Brazil. This move, while strengthening energy integration between Argentina, Brazil, and Bolivia, underscores a major economic and strategic shift—one that many experts see as a sign of Bolivia’s declining energy sector.
A Shift in Role, A Loss in Revenue
There is a stark difference between selling natural gas and merely transporting it. Experts in the hydrocarbon sector point out that this transition represents a considerable drop in Bolivia’s energy revenues. Bolivia, once a key exporter, is now reduced to a transit country, facilitating energy flows but missing out on the substantial profits that come with selling its own resources.
YPFB President Armin Dorgathen, however, presents a different perspective. He argues that Bolivia’s gas pipeline infrastructure remains an “immediate, reliable, and efficient” alternative for neighboring countries. This deal follows a November 2024 agreement between YPFB, Total Energy, and Brazil’s Matrix Energía to enable Argentine gas exports to Brazil.
A Reflection of Bolivia’s Failing Energy Policy?
Energy analyst Raúl Velásquez offers a mixed assessment. While he acknowledges that renting Bolivia’s gas pipelines generates some revenue, he emphasizes that these earnings are minimal compared to the profits from selling gas to Argentina. More critically, he blames Bolivia’s hydrocarbon policies for a drastic 55% drop in exports, citing a state-controlled, short-term vision that discouraged investment in exploration and drilling.
Another expert, Francesco Zaratti, is even more critical. He argues that renting pipelines does not compensate for the lost gas exports. He also highlights the symbolic weight of Brazil choosing to import gas all the way from Patagonia—crossing through Bolivia—rather than relying on Bolivia’s own dwindling production.
A Future Defined by Decline or Opportunity?
Bolivia’s shift from exporter to transporter signals more than just a business deal; it reflects the consequences of years of underinvestment in energy exploration. While YPFB touts the agreement as a sign of Bolivia’s strategic importance, industry experts see it as a missed opportunity and a warning sign for the country’s future in the regional energy market.
Without bold reforms and renewed investments in exploration, Bolivia risks fading from its once-dominant position—becoming a mere passageway for other nations’ energy ambitions rather than a leading player in its own right.