La Paz, Bolivia – April 2, 2025 – The President of Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), Armin Dorgathen, dismissed concerns that Argentina’s Vaca Muerta shale field poses a direct competition to Bolivian natural gas in the regional market.
“It is not a competitor because Bolivia has its market in Brazil, and we have it secured. The key factor is increasing our own gas production as a country,” Dorgathen stated in a press conference.
Bolivia’s Strategic Position in Gas Transportation
According to Dorgathen, the Brazilian energy sector demands gas from both Bolivia and Argentina, and both supplies can coexist without major conflicts in the Brazilian market.
One of Bolivia’s key advantages is its strategic location. To transport gas from northern Argentina to southern Brazil, the pipeline infrastructure must pass through Bolivian territory, for which YPFB leases its gas pipelines. This arrangement is expected to generate up to $200 million per year in transit revenues.
“We are transitioning from being gas exporters to gas transporters, and that is a natural shift,” Dorgathen explained. He acknowledged that Vaca Muerta’s reserves are among the world’s largest, making it logical for Argentina to prioritize domestic production over imports.
LNG: The Real Competitor in the Market
Dorgathen identified Liquefied Natural Gas (LNG) as the real competitor for both Bolivian and Argentine natural gas. LNG imports, arriving via ships from countries such as Russia, Iran, the United States, and Australia, often offer lower prices for Brazil.
However, YPFB is offering competitive pricing to encourage Brazil and Argentina to prioritize Bolivian pipeline connections over LNG shipments, which, despite being cheaper, may present logistical and distribution challenges in the long run.